By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- U.K. stocks snapped a five-day losing streak on Tuesday after data showed the country's economy last year expanded at the strongest annual pace since 2007, although it slowed down in the fourth quarter.

The FTSE 100 index rose 0.3% to end at 6,572.33 after closing at the lowest level since Dec. 18 on Monday.

The benchmark was supported by news that the U.K.'s economic growth in 2013 was the strongest since the financial crisis started. The country's gross domestic product rose by 1.9% last year compared with 2012, while fourth-quarter growth slowed to 0.7% from 0.8% in the previous quarter, according to the Office for National Statistics. Analysts broadly expected quarterly GDP to fall to 0.7%.

"There are absolutely no signs of growth slowing anytime soon. If anything, the risks are towards an acceleration," said Rob Wood, chief U.K. economist at Berenberg, in a note.

"The bottom line then is that monetary policy is working. Credit is flowing, uncertainty is down, confidence is returning, employment is booming, and inflation is back to target. There is no reason why monetary policy will not keep driving the U.K. forward," he added.

Among notable movers in London, mining firms posted some of the biggest gains after Nomura lifted the European metals-and-mining sector to neutral from bearish. The analysts said they expect miners to see a 24% increase in earnings per share in 2014, versus an expected 14% rise for the wider market.

"Our analysis suggests further upside potential as better input-cost pricing dynamics, weaker commodity currencies and the difficult-to-quantify benefits to costs from improved operational efficiency could see cost estimates come in lower than the market is pricing," they said.

BHP Billiton PLC (BHP) , up 1.2%, was Nomura's top pick within the sector, followed by Rio Tinto PLC (RIO), rising 2.3%.

Precious-metals miner Fresnillo PLC bucked the positive trend and declined 3.1%. The company said silver production will be broadly flat in 2014 after a rise last year, while its gold output is forecast to increase.

Lloyds Banking Group PLC (LYG) gained 3.1% after the bank said it will cut around 1,000 jobs as it pushed on with a three-year cost-cutting plan. Meanwhile, Barclays PLC (BCS) picked up 1.5% after a person close to the matter said the bank is set to cut several hundred investment-banking jobs, mainly at the managing-director level.

Shares of AMEC PLC gained 1.8% after the oil-field-services firm said its AMEC Tekfen Azfen consortium has been awarded a $974 million contract for BP PLC's (BP) Shah Deniz gas field.

On a more downbeat note, shares of BG Group PLC declined 2.6% after J.P. Morgan Cazenove cut the energy firm to neutral from overweight following the company's profit warning on Monday.

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