By Shawn Langlois, MarketWatch
LONDON (MarketWatch) -- Stocks returned to flat territory in
London on Thursday, losing then regaining ground in the wake of a
European Central Bank interest-rate cut and better-than-forecast
U.S. data. Shire PLC was among the names losing ground after
results.
The FTSE 100 index headed towards a flat close for the day, at
6,452.82.
Shire PLC fell 6.6% after the drug maker said it sees full-year
sales in the mid-to-high single digits, lower than its prior view.
Its revenue fell short of expectations in a poll from
Bloomberg.
Glencore International PLC rose over 6% after saying its merger
with Xstrata PLC is now complete.
BG Group rose 3% after the oil and natural gas company reported
a 0.8% decline in net profit for the first quarter, but said it was
on track to meet project milestones for this year. Imperial Tobacco
added 2.4%.
Royal Dutch Shell was another winner from the oil and gas
sector, up 0.8% after the company said Chief Executive Peter Voser
will retire in 2014.
Shares of Legal & General Group PLC rose over 2% after the
insurer said outlook for its business is strong after posting a
forecast-beating 28% rise in total first-quarter new business
sales, helped by better performances for U.S. and U.K.
businesses.
As for the ECB, its main refinancing rate will be lowered by 25
basis points to 0.5% while the rate on the marginal lending
facility will be cut by 50 basis points to 1%. At a news
conference, ECB President Mario Draghi said the central bank's
monetary policy would remain accommodative. Read the full
story.
Shares in London also failed to catch much of a lift from U.S.
jobless claims falling to a five-year low, which boosted U.S.
markets on Thursday.
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