By Carla Mozee, MarketWatch
Morrisons gains, Philips falls
LONDON (MarketWatch) -- European stocks rose Tuesday, with a
jump among retail stocks aiding the pan-European equity index, but
energy-related shares were stuck in the red as oil prices traded
near six-year lows.
The Stoxx Europe 600 rose 0.8% to 342.53, pushing past a lower
open.
Nearly topping the index was WM Morrison Supermarkets PLC , with
shares rising 5.2% as the U.K. retailer said Chief Executive Dalton
Philips will leave after five years in the role. The announcement
came as Morrisons reported a decline in sales excluding fuel during
the six-week Christmas period.
Meanwhile, shares of Metro AG bounced up 3.3% after the German
retailer said fiscal first-quarter sales fell 2.2% to 18.3 billion
euros ($21.6 billion), but were still above the consensus of
EUR18.2 billion in a survey by Reuters. The company said sales were
pulled lower by the slump in the Russian ruble and the disposal of
its Real business in Eastern Europe.
The Stoxx Europe 600 retail group rose 1.9%, finding support
from gains in U.K. retailers Tesco PLC and J Sainsbury PLC . The
U.K. FTSE 100 rose 0.5% to 6,536.
U.K. stocks extended gains after December inflation figures came
in lower than expected, dampening rate-hike expectations for the
Bank of England. But the pound fell, buying $1.5099 compared with
$1.5120 ahead of the report.
(Read more about U:K: retail stocks
http://www.marketwatch.com/story/uk-retailers-rally-after-christmas-sales-numbers-2015-01-13.).
A number of energy-related shares, however, moved lower as Brent
crude futures traded in London near six-year lows, down more than
3%, to below $46 a barrel. West Texas Intermediate crude-oil
futures (CLG5) lost 3%, to trade below $45 a barrel.
The Stoxx Europe 600 oil and gas group shed 0.3%, with producer
Tullow Oil off 3.6%. Jefferies initiated coverage of the oil
producer with an underperform rating. Shares of French oil-and-gas
services provider Technip SA were down 1.4%, and oil major Royal
Dutch Shell PLC was lower by 0.7%.
On the country index, Germany's DAX 30 rose 0.8% to 9,854.98,
and France's CAC 40 gained 0.8% to 4,260.
Among other movers, Philips NV shares fell 2% as the electronics
company said a delay in the production of CT scanners will reduce
full-year earnings by EUR225 million.
Gemalto NV fell 3.4% after the digital-security company was
downgraded to underperform from neutral at Exane BNP Paribas.
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