By Barbara Kollmeyer
LONDON (MarketWatch) -- European stocks logged moderate gains on
Wednesday, helped by big gains for ASML Holding NV and Peugeot SA,
as investors speculated about the potential for an interest-rate
high after better-than-expected U.K. jobs data.
The Stoxx Europe 600 index rose 0.2% to 336.41, in a session
marked by see-saw action.
Shares of Peugeot topped the gainers list with a 7.4% surge
after Moody's Investors Service said the automaker's planned 3
billion euro ($4.1 billion) capital increase is a positive for its
credit rating. The company said two days ago it would raise the
money via participation with joint-venture partner Dongfeng Motor
Group Co. and the French state.
Shares of ASML Holding (ASMLD) jumped 7.2% after the Dutch
semiconductor-equipment maker reiterated its forecast for the first
half of 2014 and posted a 62% rise in fourth-quarter net
profit.
Sage rose 4% as the U.K. business-software maker said trading
across all its regions remains in line with forecasts and it is on
course to deliver its 6% organic-revenue growth target in 2015.
On the downside, shares of ABB Ltd. fell 4% after the
power-and-technology company said fourth-quarter earnings will be
hit by around $260 million in costs linked to North Sea power
projects and restructuring.
More broadly, investors digested a bigger-than-expected drop in
U.K. unemployment, which sparked fears the Bank of England could
raise interest rates earlier than previously anticipated. The
joblessness rate for the three months to November fell to 7.1%,
closing in on the central bank's threshold of 7% for considering
raising interest rates.
The central bank said, however, in minutes from its January
meeting -- also out on Wednesday -- that even if the 7%
unemployment threshold were to be reached in the near future, there
is no immediate need to raise the interest rate.
The U.K.'s FTSE 100 index was flat at 6,833.27. Elsewhere in
Europe, the German DAX 30 index rose 0.2% to 9,753.37, aided by a
1% gain for Daimler AG and a 1.5% increase in Deutsche Telekom AG
.
French CAC 40 index rose 0.4% to 4,339.76, with Renault SA up 1.5%.
Shares of Allianz SE fell 2.4% in Frankfurt in the wake of
Tuesday's news that Mohamed A. El-Erian will step down from the
role of chief executive officer for Pimco, a unit of Allianz, after
a year of big outflows for the asset manager's flagship fund. The
company said El-Erian will stay on the international executive
committee of Allianz and advise its board of management on global
economic and policy issues.
Gains in Europe were tempered by a mixed start for Wall Street.
The Dow industrials (DJI) were hurt by a drop for shares of
International Business Machines Corp. (IBM) , which reported
fourth-quarter and full-year earnings outlooks that fell short of
analysts estimates. Also read: IBM investors are weary of managed
earnings.
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