By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- Barclays PLC led U.K. stocks higher on
Thursday after the bank outlined a new growth strategy, helping to
keep the main London index on track for the highest close in a
week.
The benchmark FTSE 100 index gained 0.5% to 6,681.12, in line
for rise of 0.9% for the week which will be shortened by the Good
Friday holiday. Read: The best stocks to play thriving U.K.
economy.
Heading into the holiday, talks between Ukraine, Russia, the
European Union and the U.S. were being held in Geneva centered on
Ukraine's political crisis and tension with Russia. Russian
President Vladimir Putin on Thursday said the Kiev government
committed "a serious crime" by sending in troops to stop unrest in
Ukraine's eastern region.
Three pro-Russian protesters were killed and 13 wounded on
Thursday after a clash with Ukrainian authorities at a military
installation in the southeastern city of Mariupol, weighing on
markets in Europe early in the trading day.
Later in the day, however, Barclays (BCS) rose 4.1% and steered
the banking sector higher after telling staff to get ready for a
shake-up. The lender said it will make changes at its investment
bank as it becomes a smaller, more-focused entity to adapt to
tougher regulatory and economic conditions.
Lloyds Banking Group PLC (LYG) climbed 2.1%, Royal Bank of
Scotland Group PLC (RBS) added 0.6% and heavyweight HSBC Holdings
PLC (HSBC) put on 0.3%.
On a more downbeat note, Diageo PLC led decliners on the FTSE
100. Shares fell 3.6% after the drinks company, whose brands
include Smirnoff vodka and Guinness stout, said sales declined 1.3%
in the third quarter, on currency weakness as well as on softer
activity in emerging markets.
British luxury-products retailer Mulberry Group PLC warned
Thursday it now expects annual profit before tax of roughly GBP14
million ($23.5 million), slightly below expectations. Mulberry said
it plans to unveil lower-priced products in a bid to bolster sales.
Mulberry shares , which are off of the FTSE 100, dropped 2%.
Meanwhile, shares of Burberry Group PLC were down 1.9%. Burberry
on Wednesday said second-half sales rose 19%, but that it expects
currency exchange rates to weigh on profit.
Although unlisted, investors in U.K. assets keep watch on
Co-operative Group Ltd., and the embattled conglomerate posted a
full-year net loss of GBP2.3 billion ($3.86 billion), mainly
stemming from an operating loss at Co-operative Bank PLC of GBP1.44
billion.
The FTSE 100 finished Thursday's session up by 0.7%.
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