LONDON MARKETS: U.K. Stocks Rebound From Three-year Low

By Sara Sjolin, MarketWatch

ARM Holdings shares slide after earnings

U.K. stocks jumped on Wednesday and rebounded from a three-year low, with investors picking up beaten down stocks after a three-day selloff.

The FTSE 100 index rose 1% to 5,688.22, after a choppy start to the day. The London benchmark on Tuesday marked its weakest closing level since Nov. 16, 2012 as investors dumped so-called risk assets on worries over the persistent slump on oil prices and slowing global growth.

Read: Cheap oil may trigger a new era of OPEC dominance, warns IEA (http://www.marketwatch.com/story/cheap-oil-for-longer-may-trigger-a-new-era-of-opec-dominance-warns-iea-2016-02-09)

Oil prices rebounded a bit on Wednesday (http://www.marketwatch.com/story/oil-hovers-above-28-a-barrel-as-market-braces-for-more-supply-data-2016-02-10), but not enough to broadly lift shares in the energy industry.

"Crude oil prices may be ticking higher, but they are still in what could be termed 'distressed' territory below $30 a barrel," said Tony Cross, market analyst at Trustnet Direct, in a note.

Shares of Tullow Oil PLC (TLW.LN) slumped 10% after the oil and exploration company reported a loss for the year (http://www.marketwatch.com/story/tullow-loss-narrows-for-2015-on-lower-write-offs-2016-02-10), albeit it narrowed compared to 2014.

BP PLC (BP.LN) (BP.LN) fell 0.3%, while Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) climbed 1.4%.

Mining shares posted some of the biggest losses in the FTSE on Wednesday, tracking losses for all major metals. Shares of Glencore PLC (GLEN.LN) (GLEN.LN) fell 3.2%, Fresnillo PLC (FRES.LN) lost 3.1%, and BHP Billiton PLC (BLT.LN)(BHP.AU) (BHP.AU) dropped 0.8%.

Among other fallers, shares of computer-chip designer ARM Holdings PLC (ARMH) (ARMH) lost 1.8% even as the Apple supplier (AAPL) reported a rise in profit (http://www.marketwatch.com/story/apple-supplier-arms-pretax-profit-up-17-2016-02-10).

On the data front, U.K. industrial production fell more than expected in December (http://www.marketwatch.com/story/uk-industrial-production-surprises-with-11-dip-2016-02-10), dropping 1.1% on the month, compared with estimates of a 0.2% decline.

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(END) Dow Jones Newswires

February 10, 2016 07:28 ET (12:28 GMT)

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