LONDON MARKETS: FTSE 100 Breaks 3-day Losing Streak As Oil Companies Rebound

By Sara Sjolin and Victor Reklaitis, MarketWatch

Pound slides back below $1.30

U.K. stocks rose for the first time in four sessions on Wednesday, with oil companies rebounding amid a highly anticipated OPEC meeting in Algeria.

The FTSE 100 jumped 0.6% to end at 6,849.38, after closing at the lowest level since Sept. 16 on Tuesday.

The U.K. benchmark has been trading at the mercy of the oil markets in recent days as investors tracked developments ahead of a meeting of members and nonmembers of the Organization of the Petroleum Exporting Countries on Wednesday.

There has been lots of chatter about whether the oil producers would reach an agreement to freeze output or cut it outright, but expectations for a deal in Algeria ended up being low. The focus has shifted somewhat to a meeting in two months. Media reports say OPEC is ready to discuss a cut of almost 1 million barrels (http://www.marketwatch.com/story/opec-to-discuss-cutting-oil-output-by-1-million-barrels-a-day-2016-09-27) a day to production, which could then be agreed at the cartel's summit in November.

Read:Why China is the oil 'wild card' that could overrule any OPEC moves (http://www.marketwatch.com/story/why-china-is-the-wild-card-that-could-overrule-any-opec-moves-2016-09-27)

Oil prices were choppy on Wednesday (http://www.marketwatch.com/story/crude-higher-but-market-faces-long-wait-for-next-opec-move-on-output-2016-09-28), but traded in the green by day's end in London, helping to lift the U.K.'s energy companies.

Shares of BP PLC (BP.LN) (BP.LN) advanced 1%, and Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) gained 0.7%.

Movers and shakers: Shares in Royal Bank of Scotland Group PLC (RBS.LN) (RBS.LN) rose 1% after the bank agreed to pay $1.1 billion (http://www.marketwatch.com/story/rbs-pays-11-billion-to-settle-lawsuits-in-us-2016-09-28-34851318) to a U.S. regulator to settle two lawsuits related to mortgage-backed securities.

The charge "fits comfortably within the GBP3.8 billion in provisions the bank has set aside," said Connor Campbell, financial analyst at Spreadex, in a note.

Banks throughout Europe also were getting a lift from a slight recovery for Deutsche Bank's stock. The embattled German bank's shares (DBK.XE) (DBK.XE) finished 2% higher in Frankfurt following news it is selling an insurance business (http://www.marketwatch.com/story/european-stocks-erase-monthly-loss-as-oil-firms-deutsche-bank-rally-2016-09-28), as the country's government denied a report it is readying a rescue plan for the bank (http://www.marketwatch.com/story/german-government-preparing-rescue-plan-for-deutsche-bank-report-2016-09-28).

Back in London, TUI AG shares gained 1.2% after the travel operator said it was confident of delivering between 12% and 13% growth in underlying earnings (http://www.marketwatch.com/story/tui-says-on-track-for-12-13-fy-earnings-growth-2016-09-28) for the year that ends Sept. 30.

Smiths Group PLC (SMIN.LN) shares finished up 4% after the controls company said fiscal 2016 pretax profit rose 6.5% (http://www.marketwatch.com/story/smiths-group-pretax-profit-rises-65-2016-09-28) and posted a marginal drop in adjusted operating profit for the period, in line with guidance.

SABMiller PLC (SAB.JO) (SAB.JO) gained 0.6% after the $100 billion-plus megamerger between the U.K. brewer and Anheuser-Busch InBev NV (ABI.BT) was approved by both companies' shareholders (http://www.marketwatch.com/story/sabmiller-shareholders-approve-ab-inbev-merger-2016-09-28-6485648).

Shares in J Sainsbury PLC (SBRY.LN) lost 3.9% after the U.K.'s second-biggest supermarket reported a decline in second-quarter comparable sales (http://www.marketwatch.com/story/sainsburys-comparable-sales-fall-11-2016-09-28).

Outside the U.K.'s main index, UK Mail Group (UKM.LN) jumped 43% after Germany's Deutsche Post DHL Group (DPW.XE) said it has agreed to acquire the delivery company (http://www.marketwatch.com/story/deutsche-post-strikes-deal-to-buy-uk-mail-2016-09-28) for 242.7 million pounds ($315.5 million) to strengthen its position in the U.K. parcel market.

Carney optimism: Bank of England Gov. Mark Carney told the Herald Scotland there are "positive long-term prospects for the U.K. economy", but that growth following Brexit is going to slow (http://www.heraldscotland.com/news/14767907.Carney__No_end_in_sight_for_North_Sea_oil_gloom/).

Sterling traded around $1.2998, compared with $1.3024 late Tuesday in New York.

(END) Dow Jones Newswires

September 28, 2016 12:11 ET (16:11 GMT)

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