By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- European stocks held to a small gain on
Monday, supported by advances for banks such as UBS AG after
regulators eased a Basel leverage-ratio rule.
Shares of Suedzucker AG jumped after the company backed its
full-year outlook.
The Stoxx Europe 600 index rose 0.1% to 330.31, after closing up
0.5% on Friday to 329.95, its highest close since May 19, 2008.
The Basel Committee on Banking Supervision watered down a
leverage-ratio rule for banks on Sunday. Regulators said they had
revised the definition of its leverage ratio that will enable banks
to report lower levels of overall risks. The move will ease
pressure on banks to shed assets or raise more capital to meet that
requirement.
Banking heavyweight UBS (UBS) rose 2.5%. Banco Santander SA
(SAN)(SAN) gained 0.8% and BBVA SA (BBVA) added 2%. Separately, UBS
Chief Executive Officer Sergio Ermotti told Bloomberg Television on
Monday that the lender does not plan to spin off its
investment-banking unit to meet regulators' demands over holding
more capital.
Shares of Suedzucker AG jumped 8% after the sugar producer said
sales and profit in the fiscal year fell, but backed its
fiscal-year outlook.
Investors remain undecided about what Friday's disappointing
U.S. jobs data, which saw just 74,000 created in December, means
for the Federal Reserve's tapering plans for its bond-buying
program. Patrick Latchford, chief executive at Monex Capital
Markets, said in a note that it may take markets a bit of time to
digest the jobs news.
"Critically it's going to be about whether this number can be
written off as erroneous or if it does indeed point to some bigger
underlying weaknesses that are now emerging, although anything that
keeps global borrowing rates in check can only be good news for
stocks," said Latchford.
Asian stocks ended higher, while U.S. stock futures leaned
south. Wall Street finished mostly higher on Friday, shaking off
earlier losses in the session from the jobs data, while this week
will see earnings from big banks rolling into the spotlight. See
Stock investors, get ready for big bank earnings
The French CAC 40 index was flat at 4,253.08. Bankers rose, with
Societe Generale SA up 1.8% and Alcatel-Lucent SA added 3.9%,
rebounding from some losses last week.
But on the downside, heavyweight Sanofi SA (SNY) fell 1.3%. The
company said Monday that it will buy a 12% stake in Alnylam
Pharmaceuticals Inc. (ALNY) for $700 million to strengthen its new
drug pipeline. The two firms will extend research collaboration to
develop and sell new drugs aimed at treating rare genetic
disorders. Alnylam soared in premarket U.S. trading.
Away from the main index, shares of Peugeot SA rose 5.6% after
reports that Sanford C Bernstein & Co. lifted the automaker to
outperform from market perform. Back on the CAC 40, Renault SA rose
2.6%.
The German DAX 30 index gained 0.1% to 9,489,65. Shares of
Continental AG lifted 1.4% after the auto-parts maker said it sees
further growth after a rise in 2013 sales.
Other gainers in Europe included Debenhams PLC up 5% after
Sports Direct said it had purchased 4.6% of the retailer. On the
main index, shares of Wm Morrison Supermarkets PLC jumped 5%
The FTSE 100 index was flat at 6.745.53.
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