By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- London markets hugged the flat line on
Monday as markets dealt with a clutch of earnings as a busy week
for central bank meetings kicked off. Shares of heavyweights Reed
Elsevier PLC and WPP PLC both dropped on broker downgrades.
The FTSE 100 index was a shade lower at 6,421.89,
underperforming the rest of European markets.
Anglo-Dutch publisher Reed Elsevier PLC took a hit, dropping
over 2% after analysts at Citigroup downgraded shares to neutral
from buy. The analysts said shares have rallied 53% since July 2012
and 21% year-to-date.
Advertising company WPP was also the subject of a broker
downgrade, as HSBC cut shares to neutral from overweight, with
analysts saying they see limited scope for further re-rating. It is
the first time HSBC has downgraded those shares in three years.
Shares of WPP fell nearly 2%.
On the upside in London, shares of Aberdeen Asset Management PLC
rose nearly 9% after it said profits and assets under management
rose for the half year ended March 31. The company also said,
though, that it remains cautious on its outlook.
Lloyds Banking Group PLC (LYG) rose nearly 1% after announcing
it will sell its Spanish retail banking operations, including to
Banco Sabadell SA , in a cash and stock transaction worth up to
EUR104 million ($136 million).
Away from the main index, shares of Balfour Beatty PLC slumped
14% after the international infrastructure group warned its U.K.
construction unit will deliver "significantly lower profits from
operations for 2013" than management had anticipated in March.
Investors will be focusing on central bank meetings this week,
including the U.S. Federal Reserve and the European Central Bank,
the latter of which many economists expect to cut interest
rates.
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