By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Here are some of the companies whose shares are making notable moves in European trade on Tuesday.

Gainers

Wm Morrison Supermarkets PLC climbed 2.5% as Citigroup upgraded the supermarkets chain to buy, according to Dow Jones Newswires.

   ArcelorMittal   added 0.5% as Credit Suisse lifted the steelmaker to outperform from neutral. 

Shares of Lloyds Banking Group PLC (LYG) put on 1.5% and Barclays PLC (BCS) rose 0.4% as HSBC lifted the two banks to overweight from neutral. HSBC said that the expected hike in U.K. interest rates would -- contrary to what it described as the conventional wisdom -- be let them make more money from their retail operations.

Decliners

L'Oréal SA lost 1.7% after Chief Executive Jean-Paul Agon cut his forecast for growth in the global cosmetics market in an interview with French daily Le Figaro.

Shares of Pirelli & C SpA dropped 1.2% as J.P. Morgan Cazenove cut the tire maker to neutral from overweight.

Deutsche Lufthansa AG gave up 2.1% after the pilot's union Vereinigung Cockpit announced a strike for Wednesday for departures from Munich airport.

Munich Reinsurance Co. fell 1.8% and Swiss Re AG erased 1.2% as Credit Suisse cut both companies to underperform from neutral.

Shares of Electrolux AB lost 3.6% as UBS cut the home-appliances maker to neutral from buy.

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