By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Shares of BP PLC declined in an
otherwise upbeat European market on Tuesday amid concerns that
tougher sanctions on Russia would hurt the oil giant's business.
Upbeat earnings reports from GKN PLC and Next PLC lifted the mood
in London.
Heavyweight BP (BP) erased earlier gains, losing 2.5% as
attention shifted from the company's solid second-quarter earnings
reports to a warning on the potential fallout from further economic
restrictions on Russia. BP said that if additional international
sanctions are imposed on Russian oil giant Rosneft this "could have
a material adverse impact on our relationship with and investment"
in the company.
BP bought a nearly 20% stake in Rosneft last year and the
investment helped boost the company's second-quarter earnings.
The European Union -- Russia's largest trading partner -- agreed
on Tuesday afternoon to a new round of sanctions, targeting the
Russian oil industry, defense sector, and state-owned banks,
according to media reports.
Other decliners
UBS AG (UBS) shares slipped 1.8% even as the Swiss banking major
reported a rise in second-quarter profit that beat
expectations.
Renault SA shares gave up 4.6% after the auto maker said revenue
slipped in the first six months of the year as an improvement in
European sales failed to offset a slide in emerging markets.
St. James's Place PLC slid 2.4% after the U.K. wealth manager
reported a 9% drop in first-half pretax profit.
Risers
GKN PLC rallied 6.7% after the car-parts maker posted an
increase in first-half profit.
Next PLC advanced 2.6% after the clothing retailer raised its
full-year profit guidance and reporting strong sales for the first
half.
Standard Chartered PLC added 2.1% after J.P. Morgan Cazenove
lifted the bank to overweight from neutral. The analysts said the
upgrade comes after "material underperformance" over the past year
and as they anticipate some of the earnings headwinds to abate from
the end of 2014.
Compagnie Generale des Etablissements Michelin climbed 1.8%. The
French tire maker said sales slipped in the first half, but
affirmed its 2014 targets.
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