By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- Retailers were in the spotlight in
London on Thursday after downbeat trading updates and as investors
waited for a policy decision from the Bank of England's Monetary
Policy Committee.
The FTSE 100 index rose 0.3% to 6,739.49, lifted by a more than
1% gain for BP PLC (BP) .
Pharmaceutical stocks also provided some inspiration, with
GlaxoSmithKline PLC (GSK) up 1.4% after a combination treatment for
a deadly skin cancer won accelerated approval from the U.S. Food
and Drug Administration.
Shares of AstraZeneca PLC (AZN) rose 1.4% after a diabetes pill
from it and Bristol-Myers Squibb Co. (BMY) won approval from the
FDA.
The Bank of England's Monetary Policy Committee will announce
its decision on monetary policy at noon in London, 7 a.m. Eastern
Time. Policy is expected to remain unchanged, though some say a
change in the bank's forward guidance is possible as U.K.
unemployment has seen a sharp fall. Speculation that the fall could
trigger a sooner-than-expected rate hike has fueled gains for the
British pound.
The European Central Bank will also announce a monetary policy
decision on Thursday. Read Draghi faces deflation threat as ECB,
BOE meet
Retailers were commanding much attention on Thursday. Shares of
Wm. Morrison Supermarkets PLC sank 5.6% after the retailer became
the latest to report a challenging Christmas trading performance.
It said full-year underlying profit would be at the bottom of the
range of current market forecasts.
Tesco PLC shares dropped 1.6% after the company said comparable
U.K. sales fell by 2.4% in the six weeks to January.
Marks & Spencer Group PLC fared better with a 3.4% gain, the
top riser for the FTSE 100. The retailer said it saw an improved
performance for general merchandise over the holidays, with U.K.
comparable sales down 0.2% in the third quarter, but up 1% in the
Christmas trading period. Still, the quarterly performance fell
below expectations, said Marks & Spencer.
ARM Holdings PLC (ARMHY) was cut to hold from buy at Deutsche
Bank, which says it's waiting for better entry points for the chip
designer. Shares of the heavyweight fell 3.8%.
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