U.K. stocks climb back after recent steep losses
By Sara Sjolin, MarketWatch
LONDON (MarketWatch)—U.K. stocks were mostly higher on Tuesday, partly reversing the prior day’s steep losses, as International Consolidated Airlines Group PLC jumped after a broker upgrade and rising oil firms added to the positive sentiment.
The FTSE 100 index UK:UKX +0.45% traded 0.6% higher at 5,696.88, making its way back from a 1.9% loss on Monday.
International Consolidated Airlines UK:IAG +3.87% ICAGY -5.14% was among biggest advancers and took on 3.9% after Credit Suisse lifted the stock to outperform from neutral.
Oil firms were also contributing to a positive mood in London, as oil prices inched higher. BP PLC UK:BP +1.54% BP -0.10% gained 1.4% and BG Group PLC UK:BG +1.51% added 1.4%.
Royal Dutch Shell PLC UK:RDSA +0.73% UK:RDSB +0.94% RDS.A -0.63% RDS.B -0.58% climbed 0.6% higher after its subsidiary Shell Exploration and Production BV said it would buy Cove Energy PLC UK:COV +3.66% for 1.12 billion pounds ($1.81 billion). Cove Energy shareholders who accept the offer will get £2.2 in cash a share. Shares of Cove jumped 3.7% to £2.25.
Miners followed metals prices higher. Fresnillo PLC UK:FRES +1.48% gained 1.5%, Evraz PLC UK:EVR +2.20% rose 1.2% and Vedanta Resources PLC UK:VED +0.94% was up 1.5%.
British banks joined the broader European banking sector in an upward trend, with Barclays PLC UK:BARC +1.81% BCS -2.49% up 2.2%, Lloyds Banking Group PLC UK:LLOY +2.03% LYG -0.53% 1.5% higher and heavyweight HSBC Holdings PLC UK:HSBA +0.48% HBC -1.25% rising 0.7%.
Bucking the positive trend in London, Imperial Tobacco Group PLC UK:IMT -1.03% ITYBY -0.73% shed 0.8% and British American Tobacco PLC UK:BATS -1.18% BTI -0.52% lost 0.5% after both companies were downgraded to neutral from buy by Bank of America Merrill Lynch.
