By Carla Mozee, MarketWatch
CRH drops as Holcim/Lafarge deal falters
LONDON (MarketWatch) -- U.K. stocks climbed Monday, following
last week's bruising round of losses for the benchmark FTSE
100.
The FTSE 100 surged 0.9% to 6,804.08, with consumer-goods and
services shares setting the pace for advancers. The benchmark was
also driven up along with a rally on the broader European equity
market
(http://www.marketwatch.com/story/european-stocks-jump-with-germanys-dax-leaping-above-12000-2015-03-16)
on the flood of liquidity from the European Central Bank's
bond-buying program, which launched last week.
In London, supermarket chain J Sainsbury PLC climbed 3.7% ahead
of its trading update on Tuesday. Rival chain Tesco PLC popped up
3.7%, home-improvement retailer Kingfisher PLC climbed 3.5% and
apparel retailer Next PLC gained 2.8%. Preliminary full-year
results from Next are due on Thursday.
Investors will watch for details Wednesday from the U.K. budget
announcement, due ahead of the country's general election in
May.
Last week, the FTSE 100 fell 2.5% for the five-day trading
period
(http://www.marketwatch.com/story/utilities-fall-in-london-trade-ftse-100-facing-weekly-loss-2015-03-13),
its biggest weekly loss since December, as mining and energy shares
were driven lower as a surge in the dollar (DXY) against its rivals
hurt dollar-denominated commodities.
On Monday, most mining stocks leapt after Chinese Premier Li
Keqiang over the weekend pledged that the government will ramp up
efforts to bolster economic growth
(http://www.marketwatch.com/story/china-signals-fresh-moves-for-economy-2015-03-15-124854757)
if slowing in the economy affects employment and incomes. China is
a key market for metals producers. Diversified miner BHP Billiton
PLC (BHP) surged 1.9% and Randgold Resources PLC gained 1.3% but
Glencore PLC slipped 0.2%.
Shares of Antofagasta PLC ended 1.2% higher, with full-year
results from the copper miner due Tuesday.
Oil-and-gas shares were mixed as prices for U.S. oil (CLJ5) and
Brent crude fell, with worries about a growing supply glut
(http://www.marketwatch.com/story/oil-extends-losses-us-crude-drops-below-45-a-barrel-2015-03-16)
gripping the market. Investors appeared to set aside a forecast
from the Organization of the Petroleum Exporting Countries that
U.S. oil production could start to fall by the end of the year.
Shares of oil major BP PLC (BP) were off 0.2% while BG Group PLC
gained 1.2%. Shares of oil producer Tullow Oil PLC fell 5.7%,
sitting at the bottom of the FTSE 100. Tullow is losing its spot on
the blue-chip index as the slide in oil prices contributed to a
drop in the company's market capitalization. The shares will move
to the FTSE 250 index at the end of trade Friday.
But shares of building materials group CRH PLC dropped 4.4% as a
proposed EUR42 billion ($44.27 billion) merger between Holcim Ltd.
and rival cement giant Lafarge SA appeared on the verge of collapse
(http://www.marketwatch.com/story/holcim-board-rejects-terms-of-proposed-4427-billion-larfarge-merger-2015-03-16).
CRH had agreed to purchase some assets from the companies.
(http://www.marketwatch.com/story/utilities-fall-in-london-trade-ftse-100-facing-weekly-loss-2015-03-13)
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