Burberry Leads UK Stock Surge with Bold Turnaround Plan

UK stocks rose with Burberry leading gains after announcing a major turnaround strategy. The FTSE 250 surged 0.8% while Burberry gained 19%. Investors are also focusing on speeches by finance minister Rachel Reeves and Bank of England chief Andrew Bailey. Aviva and United Utilities showed promising growth.

UK stocks experienced an upswing on Thursday with Burberry spearheading gains in the mid-cap index, propelled by a noteworthy turnaround plan. The luxury brand's stock soared nearly 19%, its largest single-day percentage increase, as it revealed strategies to recapture customer interest by emphasizing trench coats and scarves and moderating prices on bags and shoes.

The FTSE 250 index, buoyed by Burberry's strong performance, climbed 0.8%. "Burberry required a reset after a tough period, and the market has welcomed the strategy update from the new CEO Joshua Schulman," commented AJ Bell Investment Director Russ Mould.

The blue-chip FTSE 100 index rose by 0.5%, with investors keenly anticipating finance minister Rachel Reeves' Mansion House speech, where she is likely to delineate the Labour government's expectations from City leaders to bolster national prosperity. Simultaneously, Bank of England chief Andrew Bailey and official Catherine Mann expressed views on interest rates amidst global uncertainties.

(With inputs from agencies.)