By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks turned higher Monday,
finding some relief after a string of selloffs, in Europe and the
U.S. markets, knocked the FTSE 100 benchmark to its lowest level in
a year.
The benchmark index rose 0.5% to 6,369.27 after opening lower.
Stocks in Europe and in other markets worldwide have been beaten
down in recent sessions on heightened worries about slowing global
growth. The FTSE 100 on Friday marked a fourth consecutive session
of losses and finished last week down by 2.9%.
The FTSE 100 breaking "below the trend line support from the
March 2009 lows is something of an alarm," said Brenda Kelly, chief
strategist at IG, in emailed comments. "The 5 1/2-year bull market
now looks threatened," she said.
Market action: The materials sector on Monday was higher as
mining companies were among the advancers. Anglo American PLC
jumped 4.5%, becoming the FTSE's best price performer following a
ratings upgrade at Credit Suisse to outperform from neutral. Read
Europe Stocks to Watch.
Shares of Rio Tinto PLC (RIO) climbed 3.6% after Barron's over
the weekend said the stock could rise 20% in the next 12 months,
even without a merger with Glencore PLC . Rio Tinto earlier this
month confirmed it had rejected a takeover proposal from Glencore
in July.
Also in the mining space, Randgold Resources was up 3% and BHP
Billiton PLC spiked up 2.5%.
Shares of AstraZeneca PLC were also higher, up 1.1%, after
Jefferies upgraded the drug maker to buy from hold.
Elsewhere, chip designer ARM Holdings PLC fell 2.7%, losing
ground alongside Infineon Technologies AG and STMicroelectronics NV
after both were downgraded to neutral from overweight at J.P.
Morgan Cazenove. Semiconductor-related stocks logged big losses on
U.S. markets on Friday, after Microchip Technology Inc. (MCHP)
warned the chip sector may be in store for a downturn.
Shares of Smith & Nephew PLC gave up 1.6% after the company
said its living cell spray-on therapy, known as HP802-247, failed
to pass a late-stage clinical trial.
On Monday, the U.K. government made its first move in its
planned sale of its 40% stake in Eurostar, the train operator for
the Channel Tunnel. It has set an Oct. 31 deadline for "expressions
of interest" from potential buyers.
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