London Markets: London markets bounce back, taking cues from U.S.

The London stock market bounced back following Thursday’s Wall Street recovery, which saw the Nasdaq Composite COMP, +0.42% ending in the green.

Still, all three U.S. benchmarks on Friday were poised to fall anew ahead of a key employment report that could help determine the rate-hike plans for the Federal Reserve.

U.K. house-builders were among the top performers.

What are markets doing?

The U.K.’s FTSE 100 UKX, +1.30% climbed by 1% to 6,767.40, having ended up 0.5% on Thursday.

The British pound GBPUSD, -0.1330%  dropped to $1.2750 from $1.2782 late on Thursday.

What is driving the market?

London markets clawed back losses from Thursday, after a rebound in the U.S.

On the news that the U.S. Federal Reserve might consider slowing the pace of its rate-hiking cycle after December, U.S. markets snapped back sharply, with the Nasdaq Composite COMP, +0.42%   actually finishing higher by 0.4% to 7,188.

Which stocks were active?

Tesco PLC TSCO, +4.05%  was up by almost 5%, after two former Tesco executives are acquitted in a fraud trial.

Housebuilder Berkeley Group Holdings PLC BKG, +2.29% gained 3%, after pledging to continue return cash to shareholders, despite substantial drop in earnings in the first half of the financial year reported on Friday.

Associated British Foods PLC ABF, -4.34%  was the FTSE 100 biggest loser, dropping just over 2% after the company said trading at its key Primark business was “challenging” in November.

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