LONDON MARKETS: FTSE 100 Rises As Oil Aims For $50 A Barrel

By Carla Mozee, MarketWatch

M&S shares slammed after warning on profit margins

Stocks in the U.K. moved higher Wednesday, with energy shares rising alongside oil prices, but Marks & Spencer Group PLC shares suffered their worst fall since 2008 in the wake of the retailer's financial results.

The FTSE 100 claimed a 0.6% rise to 6,258.64, with energy, mining and financial shares gaining ground. A win Wednesday would be the benchmark's second in a row, after Tuesday's session closed up 1.4% (http://www.marketwatch.com/story/ftse-100-edges-up-as-miners-oil-companies-find-a-higher-toehold-2016-05-24) to a three-week high.

Investors were keeping tabs on oil prices, as both West Texas Intermediate oil and Brent crude headed toward $50 a barrel. Oil prices found support after industry data late Tuesday showed a bigger-than-expected decline (http://www.marketwatch.com/story/oil-prices-rally-as-api-data-show-us-crude-supply-down-51-million-barrels-sources-2016-05-24) in weekly U.S. crude supplies.

Shares of oil majors BP PLC (BP.LN) (BP.LN) and Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) each popped up 1.3%.

Later Wednesday, the U.S. Energy Information Agency will release its own weekly report on oil stockpiles.

But gains for the blue-chip benchmark were capped by a slide in Marks & Spencer (MKS.LN). The high street retailer's stock tumbled 8.7%, heading toward its worst session since August 2008, according to FactSet. Earlier Wednesday, M&S warned that its planned investment into its clothing and home-products business would hurt profit margins in the near term (http://www.marketwatch.com/story/marks-spencer-profit-down-19-warns-on-margins-2016-05-25).

"Potential shoppers such as the younger generation still regard M&S in the same manner as a trip to the dentist, with the lines, image and experience all in need of radical refreshment," said Richard Hunter, head of research at Wilson King Investment Management.

"This is something of which the company is acutely aware and will be continuing to attempt to steer a different course."

Meanwhile, Dixons Carphone PLC (DC.LN) shares were up 0.6% as the electronics retailer forecast full-year pretax profit coming in at the top half of its previous guidance (http://www.marketwatch.com/story/dixons-carphone-sees-fy-profit-at-top-of-guidance-2016-05-25).

The pound was up 0.2% at $1.4642.

(END) Dow Jones Newswires

May 25, 2016 04:50 ET (08:50 GMT)

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