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* FTSE 100 up 1 pct
* Burberry slumps after update
* Pearson extends losses
* Miners rally
By Kit Rees
LONDON, Oct 18 British stocks climbed on
Tuesday, rebounding from a fall in the previous session as
rising mining companies helped outweigh a sharp drop in
The blue chip FTSE 100 index was up 1 percent at
7,018.99 points by 0904 GMT, in line with a broader rally among
continental European indexes.
Luxury goods maker Burberry, however, slumped 8.5 percent
and was on track for its biggest daily fall in more than 4 years
after reporting results, with analysts at Liberum citing
weakness in its wholesale figures.
"Burberry ... (has) been caught in this weaker pound
increasing profits story," Jonathan Roy, advisory investment
manager at Charles Hanover Investments, said.
"There was a bit of an expectation that, if sales were flat,
the currency conversion would actually create some uptick there
in underlying earnings. However, we've seen a bit of a slowdown
in sales, which has really negated any positive currency
Burberry has rallied 24 percent since the UK voted to leave
the European Union in June, benefiting from a drop in sterling
which makes its goods cheaper for foreign buyers.
Burberry was also joined by education publisher Pearson
, which fell 4 percent after several brokers cut their
price targets on the stock.
Pearson slumped in the previous session after reporting an
underwhelming set of figures, and Tuesday's fall took its losses
to more than 11 percent for this week.
"Higher education is the highest margin of Pearson's
activities, and the drop through from lower sales will be
significant. We do not believe Pearson will hit its £800m
operating profit target, with or without FX," Berenberg analyst
Sarah Simon said in a note.
The biggest risers on the index were the mining companies,
with Polymetal International, Fresnillo, BHP
Billiton, Glencore and Anglo American
all rising between 2 percent to 3.5 percent, tracking gains in
the underlying price of copper, supported by a weaker dollar.
Publishing and events company Informa also rose, up
3.1 percent after Investec upgraded its rating on the stock to
"buy" from "hold", citing a positive impact on the firm's
earnings stream from its deal to buy U.S. information services
(Reporting by Kit Rees; Editing by Andrew Heavens)