Melrose Industries PLC

British stocks closed higher on Tuesday, with the FTSE 100 index ending at 10,886.16 points, up 31.84 points or 0.29%, supported by the UK government's announcement of a 10 billion pound ($13.6 billion) plan to build affordable housing for renters, particularly in London. About 60% of the homes built with government funds will be social housing, which lifted homebuilder stocks by 2.5%. Vistry shares surged 16.3% after receiving an initial 350 million pounds ($477.19 million) to build more than 3,000 affordable homes. Meanwhile, mining stocks such as Glencore and Anglo American rose about 2% on higher copper prices, and Melrose Industries jumped 10.4% after setting a target to resume full production at its Garden Grove plant on September 28. Next shares gained 2.4% after Citigroup upgraded its recommendation to "buy." However, BP and Shell shares slipped slightly as oil prices fell more than 3%. Investors are watching Nvidia's earnings on Wednesday and comments from Federal Reserve Chair Kevin Warsh at the Jackson Hole meeting on Friday.

Melrose Industries shares rose 8% on Tuesday after the GKN Aerospace owner said it was targeting September 28 to resume full production at its Garden Grove facility and pay up to $100 million to settle damage claims from a May incident involving an overheating chemical tank. GKN Aerospace halted production in late May at a suburban Los Angeles plant after an overheating tank raised fears of an explosion and prompted the evacuation of 50,000 nearby residents for several days. A district attorney in California said late on Monday it would close its criminal investigation into the incident without bringing charges. RBC Capital analyst Mark Fielding said in a note that while there is still some uncertainty around potential expectation costs, an up to $100 million program for local residents gives a sense of end costs that while significant, will be manageable, adding that the reopening timeline was a positive clarification. Melrose said in its half-year results in July that the facility was operating at about 50% capacity, reducing sales, profit and cash flow by about 6 million pounds per month.