MW:Europe stocks edge higher as banks, oil firms rise
By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — European stock markets inched higher in a choppy session on Tuesday as gains for banks and oil firms supported sentiment, while drug makers rose after corporate news.
The Stoxx Europe 600 index XX:SXXP -0.01% added 0.1% to 267.53, after rallying 1.5% on Monday.
Drug makers were among biggest supporters in the index as heavyweight Novo Nordisk AS DK:NOVOB +2.39% took on 2.2%. The Danish firm was also among biggest gainers on Monday after saying it owns 4.71% of its total share capital, as part of a buyback plan.
In the U.K., GlaxoSmithKline PLC UK:GSK +0.22% GSK +2.07% added 0.5% after it said it received topline results in a type 2 diabetes study. AstraZeneca PLC UK:AZN +0.60% AZN +1.78% rose 0.7% on news that it’ll partner with Amgen Inc. AMGN +0.21% to develop an inflammation portfolio.
The FTSE 100 index UK:UKX +0.07% traded 0.2% higher at 5,888.92, further lifted by Cairn Energy PLC UK:CNE +5.37% up 5.3%. The oil and gas producer bought Agora Oil & Gas, a private Norwegian company, for $450 million in shares and cash.
Weighing on the U.K. index, Compass Group PLC UK:CPG -1.57% shed 1.6% after Morgan Stanley downgraded the food service firm to equalweight from overweight.
Oil firms were also higher in France, where Total SA FR:FP +0.56% , up 0.5%, recovered from recent losses in the wake of a gas leak in the North Sea. The CAC 40 index FR:PX1 +0.12% traded 0.2% higher at 3,471.45.
Banks were on the rise in France and Societe Generale SA FR:GLE +1.00% added 1.9%, while Credit Agricole SA FR:ACA +0.82% gained 1.8%. French banks were among biggest losers on Monday after manufacturing data showed the economy contracted at a faster pace than initial expected.
In Germany, the DAX 30 index DX:DAX +0.15% took on 0.2% to 7,068.60 as Deutsche Bank AG DE:DBK -1.87% rose 1%.
Chemicals firm K+S AG DE:SDF +0.96% weighed on the index and shed 1.1% after Nomura downgraded the stock to reduce from neutral.
Nomura also downgraded Dutch specialty chemicals firm Akzo Nobel NV NL:AKZA -1.94% , down 1.6% to neutral from buy.
Sara Sjolin is a MarketWatch reporter, based in London.
