By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- U.K. stocks gained Monday, with mining shares supporting a rise in the FTSE 100 as Chinese data soothed concerns about slowing growth in a key market for U.K. companies.

But shares of Lloyds Banking Group PLC struggled as the company set the price range for an initial public offering of a business unit.

The U.K. FTSE 100 index rose 0.2% to 6,875.00, its highest close since May 14, according to FactSet data.

Gainers on Monday included copper producer Antofagasta PLC and Fresnillo PLC , with shares of up by 1.1%, after an overnight report that China's exports jumped 7% in May from the year-earlier period, in line with expectations.

Shares of Randgold Resources Ltd. and diversified miner BHP Billiton PLC (BHP) each picked up 0.6%.

But near the bottom of the FTSE 100 was Lloyds Banking Group PLC , with shares ending down by 1.7% as Lloyds set the price range for the initial public offering of its TSB unit between 220 pence ($3.69) and 290 pence. Lloyds expects to sell 125 million ordinary shares, and the offer represents around 25% of the TSB unit.

The midpoint of the price range puts TSB's market capitalization at around GBP1.275 billion.

"The price is almost a third below book value, in an attempt to woo investors in an IPO climate that many believe is getting tougher," wrote ETX Capital in a Monday note. Final pricing of the IPO will be announced on or around June 20.

Market decliners also included Aggreko PLC , which fell 0.5% after Panmure Gordon downgraded the temporary-power provider's shares to hold from buy. A visit to Aggreko's Americas operation by Panmure Gordon resulted in its view that the business appears poised for further growth. "However, until these potential prospects and opportunities translate to profits, we feel the shares look high enough after a recent run," wrote analysts Paul Jones and Mike Allen in a report.

Aggreko shares have risen more than 11% this quarter, narrowing their year-to-date loss to 2.3%.

Turning to the broader economy, Morgan Stanley analysts now expect the Bank of England to raise interest rates in the first quarter of 2015, rather than in the second quarter as previously expected. By the first quarter of next year, recovery in the U.K. economy "will look even more embedded, and we expect it to be more obvious that underlying domestic inflationary pressures are picking up," the analysts said in a note. There is a possibility of a rate hike in 2014 as "the economy continues to do well, and business surveys suggest that there is little (if any) spare capacity within firms," the analysts said.

Morgan Stanley also now expects economic growth of 3.1% in 2014, up from a previously expected rate of 2.8%. For 2015, gross domestic product is forecast to grow by 2.7%, up from an earlier 2.4% estimate.

This week, investors will assess the rate-hike picture with the release of the U.K. jobs report for April.

The International Monetary Fund's last week said the U.K. recovery could be hurt by rising housing prices, and said the government should consider ending the Help to Buy mortgage-subsidy plan.

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