LONDON MARKETS: FTSE 100 Gains As SABMiller Rises; Pound Rises After Jobs Data

By Carla Mozee, MarketWatch

U.K. stocks rose Wednesday, with shares of brewer SABMiller PLC among those moving higher following financial results.

Meanwhile, the pound (GBPUSD) climbed following monthly U.K. jobs data. Sterling rose to $1.5721, from $1.5688, after the Office for National Statistics said the unemployment rate fell to 5.5% in the three months to March, from 5.6%. Average wage growth, including and excluding bonuses, came in ahead of expectations. Read: U.K. wage growth picks up, job market strengthens (http://www.marketwatch.com/story/uk-wage-growth-picks-up-job-market-strengthens-2015-05-13)

Next up, the Bank of England will release its quarterly inflation report at 10:30 a.m. London time.

If Bank of England Governor Mark Carney "repeats that inflation will reach 2% in the two-year forecast and the next move in rates will most likely be an increase, investors could bring forward their rate-hike expectations and [the pound] could strengthen somewhat," said Marshall Gittler, head of global currency strategy at IronFX Global Ltd., in a note.

Stocks: The FTSE 100 remained higher after the jobs data, rising 0.6% at 6,971.08, as consumer-goods and industrial shares gained. The London benchmark on Tuesday fell 1.4% (http://www.marketwatch.com/story/ftse-100-under-pressure-with-easyjet-sliding-2015-05-12), its biggest decline since late March.

SABMiller shares bounced up 2.2% as the maker of Miller Genuine Draft, Peroni and other brands said annual net producer revenue came in at $26.29 billion, up 5% from the year-earlier period (http://www.marketwatch.com/story/sabmiller-annual-profit-dips-on-currency-weakness-2015-05-13), generally in line with analysts' expectations. Profit, however, dipped to $3.30 billion on currency weakness against the dollar.

"Trading conditions will continue to be challenging in light of the significant currency gyrations we can expect to witness over the coming months," wrote Brenda Kelly, analyst at London Capital Group. "The increase in the dividend by 8% to $1.13 per share should help offset any weakness in future capital gains for investors."

Barratt Developments PLC climbed 3.9% as the home builder said it expects housing completions for the full year to be ahead of previous guidance (http://www.marketwatch.com/story/barratt-sees-housing-completions-to-top-guidance-2015-05-13).

Mondi PLC zoomed to the top of the FTSE 100, charging up 10% after the packaging and paper company posted a 29% rise in underlying operating profit (http://www.marketwatch.com/story/mondi-underlying-operating-profit-rises-2015-05-13) to 236 million euros ($295 million) during the quarter ended March 31.

Decliners included Admiral PLC , with shares down 1.4%. The insurer said Chief Executive Henry Engelhardt will step down next year after 24 years in the role. Chief Operating Officer David Stevens will succeed Engelhardt.

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