By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks came off session lows
Monday, with shares of Randgold Resources Ltd. and other miners
gaining as tensions between Russia and Ukraine escalate.
The London benchmark was off 0.1% at 6,543.37 after closing with
a 2% loss last week.
U.K. stocks narrowed losses as U.S. stocks opened higher
following better-than-expected quarterly results from Citigroup
Inc. (C) and retail sales for March, and after sharp losses
recently for Wall Street's benchmarks.
Stocks in London had been down by nearly 1% during Monday's
session as investors monitored events in Ukraine, where pro-Russia
militants continued to occupy official buildings after a government
deadline to disarm passed. Earlier, Kiev said a serviceman was
killed and five wounded after camouflaged gunmen fired on
government troops near Slovyansk, about 240 kilometers from
Ukraine's border with Russia, according to Bloomberg. Ukraine,
Russia, the U.S. and European Union are scheduled to hold talks in
Geneva on April 17 to resolve the crisis, which unfolded in late
February when Russian troops seized the Ukrainian peninsula of
Crimea.
The nervousness over Ukraine lured investors into safe-haven
gold (GCM4), which rose almost $8 an ounce and gave a lift to
precious-metals miners. Randgold Resources Ltd. picked up 2.3%,
Fresnillo PLC rose 2.2% and Antofagasta PLC gained 1.3%.
Energy firms turned higher, with BG Group PLC gaining 0.3% and
Royal Dutch Shell PLC (RDSB) rising 0.4%, while Tullow Oil PLC
climbed 3.3%. Shares of BP PLC (BP) remained lower, by 0.8%.
Among other resource firms, shares of Glencore Xstrata PLC
(GLCNF) gained 1.1%. The mining major said on Sunday it agreed to
sell its Las Bambas Peruvian copper project to a Chinese consortium
in an all-cash deal worth at least $5.8 billion.
The geopolitical tension between Ukraine and Russia also
impacted the trading mood in the rest of Europe, with most
country-specific indexes pulling lower.
Risk-sensitive sectors mostly sold off in London, with
financials among the decliners. Shares of Lloyds Banking Group PLC
(LYG) and Royal Bank of Scotland Group PLC (RBS) each lost 1.4% and
Barclays PLC (BCS) shed 0.3%.
There was no relief for housing stocks Monday after a report
showed U.K. housing prices climbed 2.6% in April to a new record
high for a second consecutive month. Stock in Barratt Developments
PLC fell 4.5% and Persimmon PLC were pulled back 2.7%.
Online real estate agency Rightmove said the average asking
price for homes advertised for sale on its website rose by GBP6,632
pounds ($11,131) in April to GBP262,594.
Also heading lower, GlaxoSmithKline PLC lost 1% after a BBC
"Panorama" report that the British drug maker is facing a criminal
investigation in Poland for allegedly bribing doctors to promote
the company's Seretide asthma medication. In a statement, GSK said
it disciplined an employee in 2011 over "inappropriate
communication" in its Polish program and that it continues to
investigate as it cooperates with Poland's anti-corruption
bureau.
But Tesco PLC shares were a bright spot, rising 2.4% ahead of
the supermarket chain's quarterly results due Wednesday. Shares of
rival J Sainsbury PLC leapt 3.7%, topping advancers on the FTSE
100.
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