By Sara Sjolin, MarketWatch
BP rises after spending-cut plans
LONDON (MarketWatch) -- Oil and mining firms led U.K. stocks
higher for a second day on Tuesday, as commodity prices continued
to rebound after their recent sharp slide.
The FTSE 100 index jumped 0.9% to 6,844.85, setting it on track
for its highest close in a week.
BP PLC (BP) gained 3.7% after the oil giant said it plans to cut
spending this year to adjust to the lower oil prices. The company
also reported a replacement-cost loss -- a figure that strips out
inventory changes and is similar to the net income that U.S.
companies report -- of $969 million for the quarter, compared with
a profit of $1.51 billion in the same period last year.
Oil prices have slumped around 50% since the summer due to a
global supply glut, which has sent crude prices to the lowest
they've been in almost six years. On Monday, crude futures (CLH5)
moved back above $50 a barrel and continued to climb on Tuesday, up
$1.10 to $50.67 a barrel.
Other U.K.-listed oil firms were also mostly higher, with Tullow
Oil PLC up 2.4% and Royal Dutch Shell PLC (RDSB) rising 2.2%. Shell
shook off a downgrade to neutral from overweight by J.P. Morgan
Cazenove.
BG Group PLC inched 0.6% higher, weighed by a $8.9 billion
pretax write-down on assets in Australia.
Most metals prices were also rising, sending BHP Billiton PLC
(BHP) up 4.6%, Antofagasta PLC 4.2% higher and Rio Tinto PLC (RIO)
up 3.2%.
On a more downbeat note, shares of Aberdeen Asset Management PLC
fell 2.4% after the investment manager reported a drop in assets
under management for the three months to Dec. 31.
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