U.K. Stocks Gain, Led by Shares of Lloyds Banking Group, RBS

By Adria Cimino

Dec. 10 (Bloomberg) -- U.K. stocks gained, led by Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc, offsetting losses by mining stocks as copper prices fell.

RBS, the largest state-controlled U.K. lender, Lloyds and Barclays Plc gained more than 2 percent. Rio Tinto Group, the world’s third largest mining company, slid 1.1 percent.

The benchmark FTSE 100 advanced 28.96, or 0.6 percent, to 5,232.85 as of 10:28 a.m. in London. The FTSE All-Share Index rose 0.5 percent and Ireland’s ISEQ Index added 0.6 percent. After rallying as much as 53 percent since its low on March 3, the FTSE 100 has been little changed since mid- October amid concern the global economic recovery won’t be sustained.

European stocks rose today, snapping three days of declines, as the European Union’s Jean-Claude Juncker said he rules out a Greek state bankruptcy. Stocks declined for the first three days of the week as concern mounted about the finances of indebted countries. Spain’s credit outlook was reduced to negative from stable by Standard & Poor’s Ratings Services and Fitch Ratings downgraded Greece.

Barclays added 2.5 percent to 285 pence. Lloyds added 3.5 percent to 56.59 pence.

RBS gained 3.3 percent to 31.31 pence. The bank is close to selling assets in China, Malaysia and India to HSBC Holdings Plc, pending regulatory approval, the Wall Street Journal reported, citing people familiar with the matter.

Rio Tinto slipped 1.2 percent to 3,104 pence. Lonmin Plc, the third-largest platinum maker, lost 1.1 percent to 1,714 pence. Copper, nickel and tin declined in London.

The following shares rose or fell in London and Dublin. Stock symbols are in parentheses.

DS Smith Plc (SMDS LN) surged 9.3 percent to 124 pence, rising the most in two months. The owner of the Spicers office products brand said it will likely exceed its fiscal full-year expectations.

Irish Life & Permanent Plc (IPM ID) added 2.1 percent to 3.32 euros, rebounding after three days of losses. Ireland’s biggest mortgage lender was raised to “buy” from “hold” at Citigroup Inc., which said “the market will increasingly focus on fundamental valuation.”

Premier Farnell Plc (PFL LN) jumped 5.3 percent to 167 pence, rebounding after two days of declines. The U.K. electronic and industrial components supplier said it’s well placed to lead recovery in the industry.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.