LONDON MARKETS: Tesco Helps Push FTSE 100 Higher

By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- U.K. stocks rose Wednesday, with Tesco PLC gaining as it named its new chairman, with the release of monthly labor-market data ahead.

Investors will also be watching for the latest headlines on Greece's debt situation, with the European Central Bank set to review its emergency funding for Greek banks later.

The FTSE 100 picked up 0.2% to 6,912.08, hovering around its highest level since 1999, when it hit an all-time high of 6,930.20.

Gainers: Tesco shares were among the top performers, rising 1% as Britain's largest supermarket chain named John Allan as its chairman. His tenure will begin on March 1, as he takes over from Richard Broadbent. The company is undergoing a sweeping overhaul under the leadership of new chief executive, Dave Lewis.

Allan currently serves as chairman of home builder Barratt Developments PLC and deputy chairman of Dixons Carphone PLC .

Deutsche Bank on Tuesday upgraded Tesco to a buy rating from hold, saying the company "has shown three months of improved sales performance and the discounters share growth has slowed."

Tullow Oil was at the top of the FTSE 100, as the oil producer's shares rose 2.1%, and oil firm BG Group PLC gained 1.7%.

Decliners: But decliners included Coca-Cola HBC AG , which slipped 0.2% after the bottler posted a decline in fourth-quarter net profit and warned of a persistent volatile environment this year.

Rolls-Royce Holdings PLC shares were off 0.1%, as J.P. Morgan downgraded the engine maker to underweight from neutral.

Economy and data: In an apparent softening of stance, Greece will seek a six-month extension to its loan agreement Wednesday, an official has said. The ECB will review its emergency liquidity assistance to Greek banks, a program known as ELA, which it introduced earlier in February.

See: Why the ECB's unlikely to cut off Greek banks' emergency funds

U.K. labor market data is set for release at 9:30 a.m. London time, or 4:30 a.m. Eastern Time. Analysts expect the unemployment rate to dip to 5.7%, from 5.8%, and average weekly earnings excluding bonuses to increase 1.8%. The pound (GBPUSD) was buying $1.5356 ahead of the data, little changed from $1.5354 late Tuesday.

Bank of England minutes from its Feb. 5 policy meeting are due for release, also at 9:30 a.m. London time. Policy makers at that meeting held the key interest rate at 0.5%.

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