By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- Shares of GlaxoSmithKline PLC dropped
sharply following a profit warning, keeping a lid on gains for the
benchmark FTSE 100 index on Wednesday.
Glaxo shares (GSK) fell 4.7%, the steepest decline since October
2008, according to FactSet data, as the company said it now expects
core per-share earnings to be similar to 2013. That compares with
Glaxo's previous target of 4% to 8% growth.
Overall, the FTSE 100 edged up 4 points to 6,798.22.
U.K. stocks rose after minutes from the Bank of England's July
meeting showed all nine policy makers voted to hold interest rates
at 0.5% and keep their GBP375 billion-pound ($640 billion)
asset-purchase program unchanged. The decision came at a time when
policy makers faced criticism for sending mixed signals on the
outlook for borrowing costs.
Investors have been speculating about when the central bank will
make its first rate increase, as the market has recently received a
string of solid economic U.K. data. Several economists have
projected a rate increase in November.
"What was perhaps surprising was that the minutes did not
contain any hints from individuals that they were on the brink of
voting for tighter policy," said Investec chief economist Phillip
Shaw in a note.
The pound (GBPUSD) slipped following the minutes, buying
$1.7037, compared with $1.7091 ahead of the release.
Elsewhere, shares of BHP Billiton rose 0.6% after the miner
posted iron-ore production of 225 million metric tons for the year
through June. That was an increase of 20% on the 12 months prior.
BHP in April raised its expectations for full-year iron-ore
production to 217 million tons.
Other mining stocks gained as well. Glencore PLC rose 1%, and
Rio Tinto PLC (RIO) moved up 1.6%.
European stocks
The Stoxx Europe 600 index rose 0.1% to 342.86.
Deutsche Bank AG (DB) fell 0.7%. According to documents reviewed
by The Wall Street Journal, an examination by the Federal Reserve
Bank of New York found that Deutsche Bank's U.S. operations suffer
from shoddy financial reporting, inadequate auditing and oversight
and weak technology systems.
Among national markets, France's CAC 40 index reversed course
and rose 0.1% to 4,373.92, and Germany's DAX 30 index gained 0.2%
to 9,753.56.
Russia's MICEX index finished a choppy session up less than 1
point at 1,406.58. During afternoon trade, Ukraine's defense
ministry said two Ukrainian fighter jets had been shot down in
separatist-controlled eastern Ukraine.
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