By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- European stocks were clinging to gains
on Monday, supported by advances for banks such as UBS AG after
regulators eased a Basel leverage-ratio rule, and after a positive
session for Asian markets. Shares of Suedzucker AG jumped after
backing its full-year outlook.
The Stoxx Europe 600 index rose 0.1% to 330.28, after closing up
0.5% on Friday to 329.95, a new 52-week high. The index remains at
the highest levels since spring 2008.
The Basel Committee on Banking Supervision watered down a
leverage-ratio rule for banks on Sunday. Regulators said they had
revised the definition of its leverage ratio that will enable banks
to report lower levels of overall risks. The move will ease
pressure on banks to shed assets or raise more capital to meet that
requirement.
Banking heavyweight UBS (UBS) rose 2.8%. Banco Santander SA
(SAN)(SAN) gained 1% and BBVA SA (BBVA) added 2.3%. BNP Paribas SA
was 0.9% higher. Separately, UBS Chief Executive Officer Sergio
Ermotti told Bloomberg Television on Monday that the lender does
not plan to spin off its investment-banking unit to meet
regulators' demands over holding more capital.
Shares of Suedzucker AG jumped 6.5% after the sugar producer
said sales and profit in the fiscal year fell, but backed its
fiscal-year outlook.
Markets remain undecided about what Friday's disappointing U.S.
jobs data, which saw just 74,000 created in December, means for the
Federal Reserve's tapering plans for its bond-buying program. For
now, though, Europe was shaking off that news. Patrick Latchford,
chief executive at Monex Capital Markets, said in a note that it
may take markets a bit of time to digest the jobs news.
"Critically it's going to be about whether this number can be
written off as erroneous or if it does indeed point to some bigger
underlying weaknesses that are now emerging, although anything that
keeps global borrowing rates in check can only be good news for
stocks," said Latchford.
Asian stocks ended higher, while U.S. stock futures leaned
south. Wall Street finished mostly higher on Friday, shaking off
earlier losses in the session from the jobs data, while this week
will see earnings from big banks rolling into the spotlight. See
Stock investors, get ready for big bank earnings
The French CAC 40 index rose 0.2% to 4,258.76, helped by banks,
with Societe Generale SA up 1.7% and Alcatel-Lucent SA up 3.9%,
rebounding from some losses last week. On the downside, shares of
Sanofi SA (SNY) fell 1.6%. The company said Monday that it will buy
a 12% stake in Alnylam Pharmaceuticals Inc. (ALNY) for $700 million
to strengthen its new drug pipeline. The two firms will extend
research collaboration to develop and sell new drugs aimed at
treating rare genetic disorders.
Away from the main index, shares of Peugeot SA rose 5.6%.
The German DAX 30 index gained 0.3% to 5421.75. Shares of
Continental AG lifted 2.7% after the auto-parts maker said it sees
further growth after a rise in 2013 sales.
Other gainers in Europe included Debenhams PLC up around 5%
after Sports Direct said it had purchased 4.6% of the retailer. On
the main index, other retailers were also gaining. Shares of Wm
Morrison Supermarkets PLC jumped 3.4%, and J. Sainsbury PLC added
0.8%.
The FTSE 100 index rose 0.2% to 6.751.36.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires