By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks rose Monday, finding some
relief after a string of selloffs knocked the FTSE 100 benchmark to
its lowest level in a year.
The benchmark index ended 0.4% higher at 6,366.24 after
struggling earlier in the session. Stocks in Europe and in other
markets worldwide have been beaten down recently on heightened
worries about slowing global growth. The FTSE 100 on Friday marked
a fourth straight session of losses and finished last week down by
2.9%.
The FTSE 100 breaking "below the trend line support from the
March 2009 lows is something of an alarm," said Brenda Kelly, chief
strategist at IG, in emailed comments. "The 5 1/2-year bull market
now looks threatened," she said.
Market action: The materials sector led gains on Monday as
mining companies advanced. Anglo American PLC jumped 4.7%, becoming
the FTSE's best price performer following a ratings upgrade at
Credit Suisse to outperform from neutral. Read Europe Stocks to
Watch.
Shares of Rio Tinto PLC (RIO) climbed 4.2% after Barron's over
the weekend said the stock could rise 20% in the next 12 months,
even without a merger with Glencore PLC . Rio Tinto earlier this
month confirmed it had rejected a takeover proposal from Glencore
in July.
Also in the mining space, Randgold Resources was up 4.4% and BHP
Billiton PLC spiked up 2.9%.
Shares of AstraZeneca PLC popped up 1.3%, after Jefferies
upgraded the drug maker to buy from hold.
But chip designer ARM Holdings PLC fell 2.4%, losing ground
alongside Infineon Technologies AG and STMicroelectronics NV after
both were downgraded to neutral from overweight at J.P. Morgan
Cazenove. Semiconductor-related stocks logged big losses on U.S.
markets on Friday, after Microchip Technology Inc. (MCHP) warned
the chip sector may be in store for a downturn.
Shares of Smith & Nephew PLC gave up 1.5% after the company
said its living cell spray-on therapy, HP802-247, failed to pass a
late-stage clinical trial.
Also Monday, the U.K. government made its first move in its
planned sale of its 40% stake in Eurostar, the train operator for
the Channel Tunnel. It has set an Oct. 31 deadline for "expressions
of interest" from potential buyers.
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