UK stocks edge higher, Burberry boosts mid-caps

By Sruthi Shankar

(Reuters) – UK stocks edged higher on Thursday, with luxury firm Burberry leading gains in the mid-cap index after unveiling a turnaround plan, while declines in mining stocks kept overall gains in check.

Burberry rallied 17%, on track for a record percentage gain, after it announced a turnaround plan to win back customers by focussing on trench coats and scarves and be less ambitious with prices on bags and shoes.

The stock was the top gainer on the FTSE 250 index, which rose 0.4%.

Burberry was in need of a reset after a very difficult time for the business and the market seems to like the strategy update delivered today by new CEO Joshua Schulman,” AJ Bell Investment Director Russ Mould said.

The blue-chip FTSE 100 index climbed 0.3% as investors awaited more U.S. economic data and Federal Reserve Chair Jerome Powell’s speech later in the day for clues on the outlook for interest rates.

The FTSE 350 precious metals & mining index dropped 3.1% to a two-month low, tracking a drop in gold prices on the back of renewed strength in the dollar. [GOL/]

Industrial metal miners fell 1.1% as copper prices fell below $9,000 for the first time in more than two months. [MET/L]

Aviva climbed 4.4% after the insurer posted a 15% rise in general insurance gross written premiums for the first nine months of the year and said it was confident of meeting its group targets.

United Utilities rose 3.6% after the company which supplies water to northwest England said it expects full-year revenue to increase by about 10%.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)