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London stocks higher on GDP data as other markets drag

London stocks rose Thursday after better-than-expected British economic growth data, but other leading markets were listless despite a raft of solid earnings reports. Meanwhile a rally by the British pound proved short-lived, with the currency dropping to $1.2166 after shooting as high as $1.2272 during the day. "Stock markets are going through a period of churn as investors digest a slew of corporate results, notably from European banks and US tech firms," Jasper Lawler, analyst at CMC Markets, said in an investor note. Wall Street stocks finished lower amid concerns about surging bond yields and retailers retreating after a trade group said the contentious US presidential election is crimping shopping. The yield on the 10-year US Treasury jumped nearly 3.0 percent to the highest level since June on solidifying expectations the Federal Reserve will increase interest rates in December. "Markets are struggling, not because of earnings but because of the hike in yields," said Peter Cardillo of First Standard Financial. "That's weighing on stocks." Erik Nelson of Wells Fargo said US yields have climbed in recent weeks "as we've seen probability of a December Fed rate hike starting to firm around 75 percent." London's FTSE index rose 0.4 percent after data showed Britain's economy grew by 0.5 percent in the three months following the June referendum in favor of exiting the European Union. In the US market, shares of Best Buy, Macy's and Gap all fell more than one percent after nearly half of consumers surveyed by the National Retail Federation said they were more cautious on spending due to the uncertainty ahead of the November 8 US election. Apple fell 1.0 percent as it launched a new generation of laptops that include touch control features that people have embraced on smartphones. Some analysts said the new models, while impressive, no longer have the hardware advantage over competing computers that they used to have. - Deutsche Bank surprises - In Germany, Deutsche Bank shares firmed 0.6 percent to 13.38 euros at close, helping the Dax index to a bare gain for the day, after the troubled German lender posted a surprise third-quarter net profit. The bank's financial health has been in the spotlight ever since the US Justice Department last month sought an unaffordable $14 billion fine over its role in the subprime mortgage crisis -- sparking fears it might have to raise fresh capital. Apparently the two sides are still in negotiations over a settlement. "A surprise move into profit for Deutsche Bank has allayed some of the fears that sent shares in Germany's biggest bank into free fall," noted IG analyst Joshua Mahony. Most Asian stock markets turned lower for a second day, with energy firms struggling after another sell-off in oil fueled by concerns about a planned output cut. - Key figures around 2100 GMT - New York - Dow: DOWN 0.2 percent to 18,169.68.10 (close) New York - S&P 500: DOWN 0.3 percent to 2,133.04 (close) New York - NASDAQ: DOWN 0.7 percent to 5,215.97 (close) London - FTSE 100: UP 0.4 percent at 6,986.57 points (close) Frankfurt - DAX 30: UP 0.1 percent at 10,717.08 (close) Paris - CAC 40: DOWN 0.02 percent at 4,533.57 (close) EURO STOXX 50: UP 0.1 percent to 3,085.17 (close) Tokyo - Nikkei 225: DOWN 0.3 percent at 17,336.42 (close) Pound/dollar: DOWN to $1.2166 from $1.2242 Wednesday Euro/pound: UP to 89.57 pence from 89.09 pence Euro/dollar: DOWN to $1.0898 from $1.0907 Dollar/yen: UP to 105.20 yen from 104.51 yen Oil - West Texas Intermediate: UP 88 cents at $50.06 per barrel Oil - Brent North Sea: UP 49 cents at $50.47