London Markets: Banks lift U.K. stocks after upgrade

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) ? Banks led U.K. stocks higher on Wednesday after a ratings upgrade, while energy and mining shares tracked a move higher in most commodity prices.

The FTSE 100 index /quotes/zigman/3173262 UK:UKX +0.67% ?climbed 0.5% to 5,967.45, setting the London benchmark on pace to realize a high for 2012.

UBS settles its Libor claims

UBS will pay $1.5 billion to settle accusations by regulators that the bank tried to rig benchmark Libor rates. (Photo: Reuters.)

Banking shares posted the biggest gains in the index. Credit Suisse lifted the European banking sector to benchmark from small underweight, saying lower cost of capital should make it easier to reach required profitability levels.

Shares of Lloyds Banking Group PLC /quotes/zigman/126322 UK:LLOY +4.49% jumped 3.4%, while Royal Bank of Scotland Group /quotes/zigman/10330253 UK:RBS +4.10% ? /quotes/zigman/530544/quotes/nls/rbs RBS +3.78% ?rose 2.7%. Sector heavyweight HSBC Holdings PLC /quotes/zigman/13843 UK:HSBA +2.03% ? /quotes/zigman/207333/quotes/nls/hbc HBC +0.25% ? /quotes/zigman/13834 HK:5 +0.50% ?added 1.5% as Barclays PLC /quotes/zigman/301787 UK:BARC +3.14% ? /quotes/zigman/152323/quotes/nls/bcs BCS +2.40% ?rose 1.6%.

London shares also keyed off hopes that U.S. policy makers are inching closer to reaching an agreement to avert the so-called fiscal cliff, with only a few days left before automatic tax hikes and across-the-board spending cuts would take effect.

Investors also digested minutes from the Bank of England?s latest policy meeting, which showed near unanimity on the policy-setting committee for leaving the central bank?s asset-purchase program unchanged. See: Only one BOE policy maker wanted bigger QE in Dec.

Almost all members of the Bank of England voted to keep its asset-purchase program unchanged, minutes from the latest meeting show.

Among other notable movers, shares of CRH PLC /quotes/zigman/170487 UK:CRH +3.51% ?gained 2.4%, as Deutsche Bank lifted the construction-material firm to buy from hold.

?Although the still-subdued performance of CRH?s European markets should weigh down group volume growth in 2013, we believe that the decline in euro area sovereign risk and its gradual positive impact on sentiment should cause the stock to re-rate,? the Deutsche Bank analysts said.

Mining shares were also on the rise in London, tracking most metals prices higher. See: Gold retakes some losses, stays below $1,700

Shares of Anglo American PLC /quotes/zigman/470624 UK:AAL +0.77% ?gained 1.1%, while BHP Billiton PLC /quotes/zigman/184879 UK:BLT +0.89% ? /quotes/zigman/270355/quotes/nls/bhp BHP +0.66% ? /quotes/zigman/180893 AU:BHP +1.09% ?rose 1.1% and Rio Tinto PLC /quotes/zigman/155899 UK:RIO +0.17% ? /quotes/zigman/182541/quotes/nls/rio RIO +3.26% ? /quotes/zigman/176317 AU:RIO +1.56% ?added 1.2%.

Energy shares mostly gained, as crude-oil futures moved higher.

Shares of Tullow Oil PLC /quotes/zigman/271296 UK:TLW +0.74% ?rose 0.5%, BG Group PLC /quotes/zigman/249967 UK:BG +0.15% climbed 0.4% and Royal Dutch Shell PLC /quotes/zigman/359955 UK:RDSB +0.02% ? /quotes/zigman/379012/quotes/nls/rds.b RDS.B +1.02% ?inched 0.1% higher. See: Barclays bullish on oil-services sector for 2013 and beyond

Meanwhile, shares of Diageo PLC /quotes/zigman/208874 UK:DGE +1.09% ?picked up 1% as SABMiller PLC /quotes/zigman/244740 UK:SAB +0.80% ?gained 0.7%. Credit Suisse raised the beverage sector to overweight from benchmark, citing strong growth prospects and emerging-market exposure.

/quotes/zigman/3173262

UK : FTSE Indices

Volume: 0.00

Dec. 19, 2012 2:01p

/quotes/zigman/126322

UK : U.K.: London

Volume: 102.16M

Dec. 19, 2012 2:01p

Market Cap

?33.20 billion

Rev. per Employee

?360,302

/quotes/zigman/10330253

UK : U.K.: London

Volume: 7.76M

Dec. 19, 2012 2:01p

Market Cap

?34.08 billion

Rev. per Employee

?229,355

/quotes/zigman/530544/quotes/nls/rbs

US : U.S.: NYSE

Volume: 1.65M

Dec. 18, 2012 4:05p

Rev. per Employee

$363,431

/quotes/zigman/13843

UK : U.K.: London

Volume: 9.62M

Dec. 19, 2012 2:01p

Market Cap

?118.61 billion

Rev. per Employee

?241,978

/quotes/zigman/207333/quotes/nls/hbc

US : U.S.: NYSE

Volume: 1.49M

Dec. 18, 2012 4:03p

Market Cap

$192.70 billion

Rev. per Employee

$377,633

/quotes/zigman/13834

HK : Hong Kong

Volume: 10.19M

Dec. 19, 2012 4:01p

Market Cap

HK$1492.03 billion

Rev. per Employee

HK$2.96M

/quotes/zigman/301787

UK : U.K.: London

Volume: 24.32M

Dec. 19, 2012 2:01p

Market Cap

?31.97 billion

Rev. per Employee

?276,634

/quotes/zigman/152323/quotes/nls/bcs

US : U.S.: NYSE

Volume: 2.31M

Dec. 18, 2012 4:02p

Rev. per Employee

$437,826

/quotes/zigman/170487

UK : U.K.: London

Volume: 1.52M

Dec. 19, 2012 2:01p

Rev. per Employee

?204,858

/quotes/zigman/470624

UK : U.K.: London

Volume: 1.55M

Dec. 19, 2012 2:01p

Market Cap

?26.35 billion

Rev. per Employee

?183,228

/quotes/zigman/184879

UK : U.K.: London

Volume: 2.19M

Dec. 19, 2012 2:00p

Market Cap

?45.42 billion

Rev. per Employee

?983,627

/quotes/zigman/270355/quotes/nls/bhp

US : U.S.: NYSE

Volume: 2.76M

Dec. 18, 2012 4:00p

Market Cap

$124.60 billion

/quotes/zigman/180893

AU : Australia: Sydney

Volume: 9.62M

Dec. 19, 2012 5:05p

Market Cap

$117.21 billion

/quotes/zigman/155899

UK : U.K.: London

Volume: 3.65M

Dec. 19, 2012 2:01p

Market Cap

?50.35 billion

Rev. per Employee

?527,959

/quotes/zigman/182541/quotes/nls/rio

US : U.S.: NYSE

Volume: 6.02M

Dec. 18, 2012 4:03p

Rev. per Employee

$836,487

/quotes/zigman/176317

AU : Australia: Sydney

Volume: 3.60M

Dec. 19, 2012 5:07p

Rev. per Employee

$821,334

/quotes/zigman/271296

UK : U.K.: London

Volume: 1.11M

Dec. 19, 2012 2:00p

Market Cap

?11.07 billion

/quotes/zigman/249967

UK : U.K.: London

Volume: 3.22M

Dec. 19, 2012 2:01p

Market Cap

?35.07 billion

/quotes/zigman/359955

UK : U.K.: London

Volume: 1.68M

Dec. 19, 2012 2:01p

Market Cap

?137.72 billion

/quotes/zigman/379012/quotes/nls/rds.b

US : U.S.: NYSE

Volume: 619,449

Dec. 18, 2012 4:05p

Market Cap

$222.46 billion

/quotes/zigman/208874

UK : U.K.: London

Volume: 1.65M

Dec. 19, 2012 2:01p

Market Cap

?45.84 billion

Rev. per Employee

?418,787

/quotes/zigman/244740

UK : U.K.: London

Volume: 827,031

Dec. 19, 2012 2:00p

Market Cap

?52.53 billion

Rev. per Employee

?177,714

Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.

Source: http://feeds.marketwatch.com/~r/marketwatch/financial/~3/Woz6ZirMdfU/story.asp

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