By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Marks and Spencer Group PLC led the
U.K.'s FTSE 100 index higher on Wednesday after a well-received
earnings report, helping the benchmark snap a two-day losing
run.
The FTSE 100 index rallied 1.3% to close at 6,539.14, more than
reversing a 0.5% drop on Tuesday that was partly spurred by a
dramatic drop in oil prices and a cut in eurozone growth forecasts
by the European Commission.
On Wednesday, the benchmark shrugged off data showing activity
in the U.K. services sector dropped to a 17-month low in October.
The services purchasing managers index fell to 56.2 from 58.7 in
September. The pound (GBPUSD) dropped to $1.5980, from around
$1.6003 late Tuesday.
Shares of Marks and Spencer rallied 9.7% after the retailer
delivered a surprise rise in underlying profits for the first half
of the year.
Meggitt PLC jumped 7.6%. The engineering firm reported a rise in
organic revenue and affirmed its full-year guidance.
Oil firms rebounded from a bloody selloff on Tuesday that came
as crude dropped to a three-year low on the back of a surprise
announcement from Saudi Arabia that it will cut prices on oil sold
to the U.S. Shares of Tullow Oil PLC rose 6.9% on Wednesday, BP PLC
(BP) added 2.3% and BG Group PLC picked up 1.6%. Crude prices rose
on Wednesday.
FirstGroup PLC climbed 3.1% after the transport operator said it
swung to a pretax profit in the first six months of the year.
Outside the main index in London, shares of SWP Group PLC surged
12% after the engineering company swung to a pretax profit for
fiscal 2014 and said it will raise dividends.
Read about other European market moves here
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