The latest from London: Financials rise on higher yields

Stocks continued recovering in the UK, led by financials and strong earnings on both side of the pond. The blue-chip FTSE 100 index was up 0.6% this morning to 7586 points.

Alphabet posted record quarterly sales, while Vodafone jumped 2.9% after saying it expects to meet its full-year guidance due to a 2.7% rise in third-quarter group service revenue.

Investors are awaiting a second consecutive rate hike from the Bank of England tomorrow. Expectations of a 50-basis-point increase are pushing yields up, and banks shares are leading the FTSE 100 as a result.

Miners such as Rio Tinto and Anglo American are also performing well due to higher metal prices.

After Credit Suisse upgraded Ocado, the online supermarket chain jumped 7.5%.

 

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Alphabet reports big fourth-quarter beat; stock pops (CNBC)