By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks rose Tuesday, with gains for
the embattled resources-sector leading the FTSE 100 toward its
first win in four sessions.
The FTSE 100 rose 0.7% to 6,702.32, with shares of Tullow Oil
PLC rising 4.8% to become the strongest advancer on the
benchmark.
Tullow shares had tumbled nearly 22% since Thursday as part of a
broader selloff in the oil sector after the Organization of the
Petroleum Exporting Countries held to its production target. That
decision was a disappointment to investors, who had looked to the
group to address oversupply and a related slide in prices.
Also higher, oil firm BG Group PLC climbed 3.3%, Royal Dutch
Shell PLC tacked on 2.2% and BP PLC gained 2%.
Oil prices turned higher on Monday, but were back in negative
territory on Tuesday, with New York Mercantile Exchange, light,
sweet crude futures for January delivery (CLF5) down 0.4% at $68.79
in electronic dealings.
Mining stocks were also higher, getting a break from recent
selling as the industry grapples with slowing in the Chinese
economy and a slump in iron-ore prices. Shares of Anglo American
PLC rose 3.5%, and Rio Tinto PLC (RIO) was pushed 2.2% higher.
Friends Life Group Ltd. shares bounced up 2.8% after the company
and Aviva PLC agreed on a 5.6 billion pound ($8.8 billion) deal
that would create the U.K.'s largest insurance, savings and
asset-management company. Aviva shares were up 0.2%.
But shares of Royal Mail PLC fell 1.8% after regulator Ofcom
said it won't impose new conditions on Royal Mail's direct-delivery
competitors as the "universal postal service is not currently under
threat."
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