London stocks soar on miners, GDP data boost; Burberry sinks

UK stocks rose on Friday amid a broad rally underpinned by gains in precious metal miners tracking gold prices higher, while investors cheered as the British economy rebounded in November. The blue-chip FTSE 100 was up 0.9% by 0813 GMT and the midcap FTSE 250 index gained 1.0%, but both the indexes were set to book losses for the second consecutive week.

UK stocks rose on Friday amid a broad rally underpinned by gains in precious metal miners tracking gold prices higher, while investors cheered as the British economy rebounded in November.

The blue-chip FTSE 100 was up 0.9% by 0813 GMT and the midcap FTSE 250 index gained 1.0%, but both the indexes were set to book losses for the second consecutive week. Burberry shares dropped 9.3% after the British luxury fashion brand warned its full-year results would fall below its previous guidance after a further slowdown in its key December trading period.

The luxury retailer dragged the personal goods sector down to an over 11-year low. Precious metal miners were the top gainers with a 2.4% jump, boosted by higher gold prices as global strikes on Yemen added to fears of further escalation in the Middle East conflict, enhancing the bullion's safe-haven appeal.

Meanwhile, Britain's economy grew slightly more strongly than expected in November, but the weakness in previous months leaves it at high risk of slipping into a recession.