Burberry leads U.K. stocks higher in upbeat trade

LONDON (MarketWatch) — Burberry Group PLC led U.K. stocks higher Thursday, rallying after the firm issued a well-received trading update, while banks and miners also scored solid gains.

The FTSE 100 index  added 0.9% to close at 5,829.75, breaking a three-session losing streak.

Shares of Burberry   jumped 13% after the luxury-goods firm said that total revenue for the fiscal first half rose 8% and that comparable-store sales grew 3%. See: Burberry sales growth slows in tough conditions

Tate & Lyle PLC  also gained, up 1.2%, after Société Générale lifted its rating on the ingredients firm to buy from hold.

Helping set the trading tone, U.S. jobless claims showed a sharper-than-expected drop: First-time filings for unemployment benefits last week dropped by 30,000 to 339,000, the fewest in more than four years. See: Jobless claims plunge to four-year low.

Among sectors making major moves in London, banks advanced along with their European peers.

Shares of Barclays PLC  moved 4.8% higher, followed by Royal Bank of Scotland Group PLC , up 4.2%, and Lloyds Banking Group PLC  , up 2%.

Heavyweight HSBC Holdings PLC   also rose, up 1.3%.

Mining shares tracked gains in metals prices. Kazakhmys PLC  advanced 3.2%, Rio Tinto PLC   gained 2.4% and Anglo American PLC  rose 1.6%. See: Gold futures pare gains after jobless data

Oil prices were on the rise as well, giving London-listed energy shares a lift. BG Group PLC  added 2.4% as BP PLC   closed up 0.6%. See: Oil futures rise; U.S. inventories in focus.

Also higher, BAE Systems PLC  climbed 2.4%.

Exane BNP Paribas raised the defense firm to a neutral rating from underperform previously. Talks regarding a $45 billion merger between BAE and EADS NV  collapsed Wednesday. Read: wholesale-prices-custom-burberry
However, shares of Wm. Morrison Supermarkets PLC , gave up 1.6% after Credit Suisse cut its rating on the food retailer to neutral from outperform.