By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- London markets broke higher on Monday as
markets shook off some earlier gloom and dealt with a clutch of
earnings as a busy week for central-bank meetings kicked off. Some
miners and oil stocks contributed to gains, lifted by higher
commodity prices.
The FTSE 100 index rose 0.4% to 6,449.61, still lagging the rest
of European markets by the afternoon though. Markets got an extra
lift as U.S. stocks opened higher.
Anglo-Dutch publisher Reed Elsevier PLC took a hit, dropping
over 1.7% after analysts at Citigroup downgraded the 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 the stock 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 0.7%.
On the upside in London, shares of Aberdeen Asset Management PLC
rose over 7% 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 1.2% after announcing it
will sell its Spanish retail-banking operations to Banco Sabadell
SA , in a cash and stock transaction worth up to EUR104 million
($136 million).
Resource stocks were also on the rise, keeping pace with higher
gold and oil prices. Eurasian Natural Resources Corp. rose 2% and
Randgold Resources PLC added 1%.
Royal Dutch Shell PLC (RDSA) rose around 1%. Shares of BG Group
PLC rose nearly 2%.
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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