By Sara Sjolin, MarketWatch
BP rises after spending-cut plans
LONDON (MarketWatch) -- The U.K.'s benchmark stock index was on
track for the highest close since September, boosted by oil and
mining firms, and by optimism over progress in Greece's debt
negotiations.
The FTSE 100 index jumped 1.2% to 6,862.39, marking a second
straight day of gains and tracking sharp advances across Europe.
The positive trading mood came as Greek Finance Minister Yanis
Varoufakis backed away from requesting a debt write-down for the
country from creditors. Instead, he proposed a debt-swap plan,
where repayments are linked to future growth, among other things.
Greece's Athex Composite index rallied 8.6% to 820.48.
Back in the U.K., BP PLC (BP) gained 2.7% after the oil giant
said it plans to cut spending this year to adjust to lower oil
prices. The company also reported a replacement-cost loss -- the
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
$1.48 to $51.05 a barrel.
Other U.K.-listed oil firms were also mostly higher, with Tullow
Oil PLC up 2.6% and Royal Dutch Shell PLC (RDSB) rising 2.6%. Shell
shook off a downgrade to neutral, from overweight, by J.P. Morgan
Cazenove.
BG Group PLC dropped 1.1%, weighed by a $8.9 billion pretax
write-down on assets in Australia.
Most metals prices were also on the rise, as were miners. BHP
Billiton PLC (BHP) was up 4.9%, Antofagasta PLC 4.6% moved higher
and Rio Tinto PLC (RIO) gained 2.8%.
On a more downbeat note, shares of Aberdeen Asset Management PLC
fell 3.7% after the investment manager reported a drop in assets
under management for the three months to Dec. 31.
In Dublin, Ryanair Holdings PLC gained 2.1%, crawling back after
a 6.1% loss on Monday that was spurred by the airline's cautious
tone on profit growth. The stock also shook off news that Danish
union LO will drag the airline to court for not complying with
Denmark's labor laws.
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