UPDATE 3-UK stocks join European rally after ECB signals rate hike further away


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    * FTSE 100 up 0.8 pct 
    * Unilever says Brazil strike hit sales, shares fall 3.7 pct
    * Restructuring, job cuts send Rolls Royce up 6.5 pct
    * Aveva jumps 12 pct after results

 (Updates prices, adds quotes, details)
    By Helen Reid
    LONDON, June 14 (Reuters) - Britain's main stock index rose
on Thursday after the European Central Bank signalled interest
rates would remain steady through next summer, easing investors'
concerns about tightening monetary policy.
    The ECB announced it would end its unprecedented bond
purchase scheme by the end of this year, but said it would
maintain rates at record lows at least through the summer of
2019.  urn:newsml:reuters.com:*:nL8N1TG0UZ
    The FTSE 100  .FTSE  climbed 0.8 percent to a three-week
high, having fallen as much as 0.7 percent earlier when a more
hawkish rates outlook from the U.S. Federal Reserve weighed on
equities.  urn:newsml:reuters.com:*:nTLADHEE2K
    High dividend-yielding healthcare stocks, which are
sensitive to interest rates, boosted the index, while "bond
proxy" consumer goods stocks including Imperial Brands  IMB.L 
and British American Tobacco  BATS.L  also gained. 
    "While yesterday's Fed hike was very much 'hawkish', in our
view, the ECB opted to announce the end of its net asset
purchases with a dovish flavour," said Luigi Speranza, head of
European market economics at BNP Paribas.
    In notable single-stock moves, Unilever  ULVR.L  shares fell
2.8 percent after the consumer goods giant said a truck drivers'
strike in Brazil would hit sales more than expected.
    Unilever also said it was "extremely unlikely" to stay in
the FTSE 100 after its headquarters move to the Netherlands. 
    Rolls Royce  RR.L  shares surged 6.5 percent, the biggest
boost to the index, after the engine maker announced it would
cut 4,600 jobs, targeting 400 million pounds of annual savings
in a restructuring effort that investors welcomed.  urn:newsml:reuters.com:*:nL8N1TG0QV
    Pharmaceutical company GlaxoSmithKline  GSK.L  gained 2.3
percent after its two-drug treatment for HIV met its main goal
in late stage studies.  urn:newsml:reuters.com:*:nL8N1TG355
    "At face value this is good news as competition in the HIV
space has heated up, threatening GSK's highest-margin business,"
UBS analysts said in a note, adding that they needed to see more
details on the trial. 
    Mining stocks weighed after copper prices slipped to a
one-week as weaker Chinese data, including industrial output,
pointed to lower-than-expected activity last month.  urn:newsml:reuters.com:*:nL4N1TG1FF
    Antofagasta  ANTO.L  and Anglo American  AAL.L  fell as much
as 1.5 percent.
    Stocks going ex-dividend - including Persimmon, Severn
Trent, Intermediate Capital and WPP - took 4.5 points off the
index.  urn:newsml:reuters.com:*:nL8N1TE1DM
    Retailers made gains after retail sales data for May smashed
forecasts as the royal wedding and sunnier weather drove Britons
to spend more freely. urn:newsml:reuters.com:*:nUKLQCED6E
    The general retailers index  .FTNMX5370  rose 0.8 percent.
    Among mid-caps, Aveva  AVV.L  shares jumped 11.8 percent to
a record high after the engineering software company reported
better full-year results and targeted cost savings of 25 million
pounds.  urn:newsml:reuters.com:*:nL8N1TG1AL
    "The first update on financials for the combined pro forma
business reads well," said Investec analysts.
    Overall the FTSE 100 has been making progress, outperforming
European markets in May, and investors have been growing more
optimistic about the market's prospects. 
    Bank of America Merrill Lynch's June fund manager survey
showed investors' underweight in UK stocks fell to its smallest
point in more than a year.

FTSE 100 earnings expectations    https://reut.rs/2JAnNGu
 (Reporting by Helen Reid
Editing by Mark Heinrich)
 ((Helen.Reid@thomsonreuters.com; +44 20 7542 0402;))
For related prices, Reuters users may click on - * 
 UK stock report      .L     
 FTSE index:          0#.FTS6  
 techMARK 100 index:  .FTT1X          FTSE futures:      0#FFI:  
 Gilt futures:        0#FLG:          Smallcap index:     .FTSC  
 FTSE 250 index:      .FTMC           FTSE 350 index:     .FTLC  
 Market digest:       .AD.L           Top 10 by vol:      .AV.L  
 Top price gainers:   .NG.L           Top % gainers:      .PG.L  
 Top price losers:    .NL.L           Top % losers:       .PL.L  
 * For related news, click on - *
 UK hot stocks:      [HOT and GB]     Wall Street:           .N 
 Gilts report:        GB/             Euro bond report  GVD/EUR 
 Pan European stock report:  .EU 
 Tokyo stocks:        .T              HK stocks:            .HK 
 Sterling report:     GBP/            Dollar report:       USD/ 
 * For company prices, click on - *
 Company directory:   UKEQ           By sector:           FTAX  
 * For pan-European market data, click on - *
 European Equities speed guide................  EUR/EQUITY  
 FTSE Eurotop 300 index...........................  .FTEU3  
 DJ STOXX index...................................  .STOXX  
 Top 10 STOXX sectors........................  .PGL.STOXXS  
 Top 10 EUROSTOXX sectors...................  .PGL.STOXXES  
 Top 10 Eurotop 300 sectors..................  .PGL.FTEU3S  
 Top 25 European pct gainers....................  .PG.PEUR  
 Top 25 European pct losers.....................  .PL.PEUR ))

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