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, setting the benchmark on track to snap a two-day
losing run.
The FTSE 100 index gained 0.7% to 6,597.10, climbing back after
posting a 0.5% drop on Tuesday that was partly spurred by a
dramatic drop in oil prices and the European Commission cutting
growth forecasts for the eurozone.
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) slipped after the data, trading at
$1.5894, from around $1.593 ahead of the report.
Shares of Marks and Spencer rallied 8.2% after the retailer
delivered a surprise rise in underlying profits for the first half
of the year.
Meggitt PLC jumped 6.5%. The engineering firm reported a rise in
organic revenue and affirmed its full-year guidance.
Oil firms rebounded slightly after a bloody selloff on Tuesday,
fueled by crude dropping 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 3.5% on
Wednesday, BP PLC (BP) added 0.4% and BG Group PLC picked up 0.5%.
Crude prices continued to slide on Wednesday.
FirstGroup PLC climbed 2.6% 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
10% after the engineering company swung to a pretax profit for
fiscal 2014 and said it will raise dividends.
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