FTSE 100 index up 0.6%; Vodafone Group, Unilever shares advance
LONDON (MarketWatch) -- London shares advanced on Thursday, for the first time in three sessions, with Vodafone Group taking back some losses and Unilever also performing well.
The U.K. FTSE 100 index rose 0.6%, or 21.57 points, to 4,062.46. Other European shares traded mixed, while U.S. stock futures were higher.
Shares closed with sharp losses on Wednesday, hammered by worries about how companies will cope in an environment of contracting growth.
Commodity prices also sold off heavily on Wednesday but oil prices retook a bit of ground early Thursday, with the contract back up over $68 a barrel.
Shares in oil major BP climbed 1.56%, while Royal Dutch Shell shares edged up 0.4%.
Vodafone Group shares advanced 4% in early trading, paring losses made this week to roughly 11%.
Shares in food producer and household products maker Unilever also moved higher, up 3.4%.
Swiss food producer Nestle reported a 3.4% increase in nine-month revenue to 81.4 billion Swiss francs ($69.8 billion) and a strong rise in organic sales, and gave an upbeat full-year growth outlook.
Miners decline
However, miners were generally having a downbeat day. Gold futures fell another $6.50 to $728.70 an ounce in electronic trading.
Shares in Vedanta Resources fell 4%, shares in Antofagasta declined 7.5% and shares in Lonmin lost 6.3%.
Anglo American shares fell 1.5%. It said production of iron ore, metallurgical coal, thermal coal, manganese ore and steel products all rose in the third quarter, while platinum and copper production declined.
Anglo American also said that given the volatile markets and an economic slowdown it is conducting a review of its project pipeline to assess capital expenditure.
Rio Tinto shares declined 6%, while BHP Billiton shares fell 4.2%.
European regulators have expressed concern BHP's takeover bid for Rio Tinto may run afoul of anti-trust rules, according to reports. See full story.
Shares in building materials group Wolseley fell 2.2%.
It said that it will significantly restructure its U.S. building materials business, Stock Building Supply, to cope with deteriorating market conditions.
It will close 86 branches, taking the branch numbers to 209. It will also exit 16 markets in 6 states, leaving a presence in 27 states. There will be further headcount reductions of around 3,000 to leave around 8,700 employees.
DSG higher
Outside the top index, shares in electrical goods retailer DSG International jumped 11.7%.
The firm said Thursday that, in the 24 weeks to Oct. 18, total sales rose 3% while comparable sales fell 7%. Gross margins fell 0.7% year-on-year, primarily as a result of increased hardware mix and managing stock in a depressed market.
The group intends to further focus on cash, cutting costs, improving margins and reducing stock. It is also cutting capital expenditure by approximately £30 million this year.
