By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- European stocks shifted higher on
Tuesday after slightly better-than-expected German jobless data,
while broker moves triggered gains for stocks such as BASF SE and
Delta Lloyd NV, and losses for Swedish Match AB and Debenhams
PLC.
The Stoxx Europe 600 index rose 0.2% to 327.75, following a drop
of 0.2% on Monday.
Vestas Wind Systems AS was the biggest mover on the Stoxx 600,
up more than 5%.
Broker moves triggered action for several companies. Shares of
BASF SE added nearly 3% after UBS lifted shares to buy from
neutral, saying the company should resume a re-rating trend
relative to other big-cap chemical household names. UBS also cut
Air Liquide SA to sell from neutral, triggering a drop of 1%,
saying shares in the industrial gas producer should resume
underperformance versus BASF.
The German DAX 30 index rose 0.3% to 9,457.30 after data showed
seasonally adjusted jobless figures in the country falling 15,000
to 2.97 million in December, which was better than expected. German
retail sales data also came in better than expected, with a
November preliminary rise of 1.5%.
Delta Lloyd NV rose 3% after J.P. Morgan Cazenove lifted shares
to overweight from neutral, in a broad note on European life
insurers. The investment bank said it's positive on the sector as
it sees increasing focus on balance-sheet strengthening, cash flows
and restructuring. It said shares of Delta Lloyd, specifically,
should continue to see a re-rating.
On the downside, shares of Swedish Match AB were a top decliner,
off 4.8% after Citi cut it to sell from neutral, saying competition
pressures in Sweden were likely to continue in 2014. It cited
specific worries about the cigar sector.
A number of tech companies were affected by a note from Barclays
analysts on the sector. They said they see a gradual improvement
for the European technology sector, but shares of Software AG fell
4% after a cut to equalweight from overweight, while ST
Microelectronics NV slid 2.3% after a cut to underweight from
equalweight.
Shares of Severn Trent PLC fell 2.3% after J.P. Morgan Cazenove
cut shares in the water company to underweight from neutral. It
cited concerns about rising regulatory risks, and a decreasing
likelihood of mergers and acquisitions activity.
Retailer Debenhams PLC fell 2% after HSBC cut it to neutral from
overweight, citing a poor Christmas sales season. However, it
lifted fellow retailer Next PLC to overweight from neutral, with
those shares up 0.4%. The FTSE 100 index rose 0.3% to 6,747.80.
The French CAC 40 index gained 0.2% to 4,237.78, with banks such
as Credit Agricole SA and BNP Paribas SA up 2.4% and 1.%,
respectively.
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