UK Stocks Gain 2% and Confidence Dips, Ireland Unemployment at 14.4%

Arthi Gupta
31 Aug, 2011
New York City

The UK indexes extended gains of more than 2% for the second day in a row. UK consumer confidence dipped in August. Irish jobless rate rose to eight-month high in August. Tesco decided to sell its business in Japan.

[R]3:35 PM London – The UK indexes extended gains of more than 2% for the second day in a row. UK consumer confidence dipped in August. Irish jobless rate rose to eight-month high in August. Tesco decided to sell its business in Japan.[/R]

In London, FTSE 100 Index surged 114.16 or 2.16% to 5,382.98 and the pound edged higher to $1.6316.

UK Confidence Dips

Confidence among UK consumers fell for a third month in August on growing pessimism over the prospects of the economy amid slowing global growth and debt woes in Europe.

Research firm GfK NOP said Wednesday that its consumer confidence index fell to minus 31 in August from minus 30 in July, the lowest in four months.

Irish Jobless Rate Rises

Ireland''s jobless rate increased to a seasonally adjusted 14.4% in August from 14.3% in July, data released by the Central Statistics Office showed on Wednesday. The latest data was the highest since December 2010, when the unemployment rate was 14.7%.

Gainers & Losers

Aer Lingus Group Plc surged 8% to €0.64 after the Irish airline said second quarter revenue climbed 14% to €351.2 million from €308 million last year. Pre-tax profit in the period surged 174% to €42.2 million from €15.4 million in the quarter a year ago.

Cape Plc plunged 5.2% to 461.50 pence after the holding company stated first-half revenue climbed 1.1% to £335 million from last year''s £331.3 million. Profit in the period declined 11% to £21 million or 17.2 pence per share compared to £23.5 million or 19.6 pence per share a year ago.

CSR plc gained 0.91% to 222.50 pence after the provider of single chip wireless solutions said it completed the acquisition of Zoran Corp.

On August 30, Zoran shareholders approved the merger which offers them $6.26 in cash and 0.589 shares of CSR.

IFG Group plc soared 3% to €1.70 after the financial services company reported first-half revenues improved to £56.3 million from £49.6 million. Profit for the period rose to £7.4 million, or 5.94 pence per share, from £870,000, or 0.83 pence per share a year ago.

Tesco Plc climbed 2.95% to 375.55 pence after the retailer announced its decision to sell its business in Japan.