By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks turned slightly higher
Monday, finding some relief after a string of selloffs knocked the
FTSE 100 benchmark to its lowest level in a year.
The benchmark index edged up 0.1% to 6,346.97 in morning trade
after opening lower. Stocks in Europe and in other markets
worldwide have been beaten down in recent sessions on heightened
worries about slowing global growth.
The materials sector on Monday was higher as mining issues
advanced. Shares of Rio Tinto PLC (RIO) climbed 2.2% after Barron's
over the weekend said the stock could rise 20% in the next 12
months, even without a merger with Glencore PLC . Rio Tinto earlier
this month confirmed it had rejected a takeover proposal from
Glencore in July.
Anglo American PLC rose 2.5% following an upgrade at Credit
Suisse. Randgold Resources was up 2.3%, and United Utilities Group
PLC gained 1.2%.
But the FTSE 100 breaking "below the trend line support from the
March 2009 lows is something of an alarm," said Brenda Kelly, chief
strategist at IG, in emailed comments. "The 5 1/2-year bull market
now looks threatened," she said.
Chip designer ARM Holdings PLC fell 1.7%, losing ground
alongside Infineon Technologies AG and STMicroelectronics NV after
they were downgraded to neutral from overweight at J.P. Morgan
Cazenove. Semiconductor-related stocks logged big losses on U.S.
markets on Friday, after Microchip Technology Inc. (MCHP) warned
the chip sector may be in store for a downturn.
Shares of Smith & Nephew PLC gave up 0.9% after the company
said top-line results from a late-stage trial of HP802-247, a
living cell spray-on therapy to help healing of venous leg ulcers,
didn't meet the primary endpoint. TUI Travel PLC fell 1.2%.
On Monday, the U.K. government made its first move in its
planned sale of its 40% stake in Eurostar, the train operator for
the Channel Tunnel. It has set an Oct. 31 deadline for "expressions
of interest" from potential buyers.
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