By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks climbed Wednesday, pushing
to session highs alongside a broader rally among European stocks as
investors bet on further stimulus measures from the European
Central Bank.
The FTSE 100 jumped 1.3% to 6,446.31 in the wake of a
below-consensus report on eurozone consumer prices. The data coming
from Eurostat appear to "strengthen the case for there to be some
kind of quantitative easing or monetary easing in the short-term
rather than in the medium-term," said Richard Hunter, head of
equities at Hargreaves Lansdown.
The eurozone is the U.K.'s largest trading partner, and weakness
there has had a dampening effect on the U.K. economy.
Oil and gas stocks were higher. Tullow Oil PLC shares rose 2.6%,
BG Group PLC advanced 1.4% and BP PLC (BP) picked up 1%. The oil
sector has been hammered in recent weeks as oil prices have slid to
more than five-year lows. Brent crude on Wednesday briefly fell
below $50 a barrel for the first time since May 2009.
In terms of oil generally, "investors are starting to appreciate
that there's a flip side to lower oil prices which is positive
particularly for consumers, on the basis that it's effectively a
tax cut, especially at the petrol pumps, and, of course, airlines
and travel stocks," said Hunter.
Retail stocks had strong showing after J Sainsbury PLC (JSAIY)
reported a narrower-than-expected decline in fiscal same-store
sales of 1.7%, excluding fuel. The period included the key
Christmas season. Sainsbury shares had been at the top of FTSE
earlier Wednesday, but have since dropped by 2.7%.
But Tesco PLC (TSCDY) shares held to higher ground, rising 2%.
Britain's largest supermarket chain is due to release a trading
update on Thursday. Marks & Spencer PLC shares added 2.2%. Wm
Morrison Supermarkets PLC turned 0.7% lower.
Meanwhile, Aggreko PLC shares rose 3.3% as the temporary-power
provider said it sees a small increase in 2014 profit after it won
a two-year contract in Argentina and extended an existing contract
with the same customer by two years.
Royal Dutch Shell PLC (RDSB) turned 1.8% higher. The oil company
has agreed to pay about $80 million to compensate a Nigerian
community for damage from two oil spills in 2008.
Elsewhere, Persimmon shares rose 0.7% following the home
builder's report that it sold 17% more homes at higher prices in
2014.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires