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By Barbara Kollmeyer, MarketWatch , Emily Horton

Johnson Matthey, Kingfisher among the big movers

London stocks rebounded along with global equities on Wednesday, with banks and major oil companies leading the gains, but a big retail name remained under pressure.

How are the markets performing?

The FTSE 100 rose nearly 1% to 7,016.69, after closing down 0.4% on Tuesday.

The British pound was last trading at $1.2804, up from $1.2789 late Tuesday in New York.

What drove stocks?

Doubts about the chip sector have driven a brutal selloff in U.S. tech stocks, with The Nasdaq Composite Index falling 1.7% on Tuesday. The tech-heavy index has dropped 1,000 points since the third quarter began, and it is down more than 10% in the past three months.

As of Tuesday's close, all the s-called FAANG stocks were in a bear market, leaving Microsoft Corp. (MSFT) as the only megacap U.S. tech company less than 20% off its peak. But stock futures pointed to gains for U.S. stocks a day ahead of the Thanksgiving Day holiday.

Read:Which markets are closed on Thanksgiving? (http://www.marketwatch.com/story/which-markets-are-closed-on-thanksgiving-2018-11-20)

What stocks were active?

As oil prices recovered part of Tuesday's 7% plunge, major producers added to gains, helping the broader index move higher. Among them, BP PLC (BP.LN) (BP.LN)(BP.LN) rose 1.5% and Royal Dutch Shell Group PLC (RDSA.LN) (RDSA.LN)(RDSA.LN) gained 1.6%.

Also helping out were big bank names, with HSBC Holdings PLC (HSBA.LN) (HSBA.LN) up 2.2% and Lloyds Banking Group PLC (LLOY.LN) (LLOY.LN) gaining 1%.

Among the decliners, retailer Kingfisher PLC (KGF.LN) dropped over 2% after reporting a fall in same-store sales (http://www.marketwatch.com/story/kingfisher-to-return-extra-65-million-in-buybacks-2018-11-21).

Specialty chemical company Johnson Matthey PLC (JMAT.LN) surged nearly 10% after posting a 19% rise in profit (http://www.marketwatch.com/story/johnson-matthey-profit-up-sees-growth-on-target-2018-11-21) and making upbeat comments on guidance.

(END) Dow Jones Newswires

November 21, 2018 08:44 ET (13:44 GMT)

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