EUROPE MARKETS: European Stock Up; Peugeot, ASML Surge

By Barbara Kollmeyer

LONDON (MarketWatch) -- European stocks logged moderate gains on Wednesday, helped by big gains for ASML Holding NV and Peugeot SA, as investors speculated about the potential for an interest-rate high after better-than-expected U.K. jobs data.

The Stoxx Europe 600 index rose 0.2% to 336.41, in a session marked by see-saw action.

Shares of Peugeot topped the gainers list with a 7.4% surge after Moody's Investors Service said the automaker's planned 3 billion euro ($4.1 billion) capital increase is a positive for its credit rating. The company said two days ago it would raise the money via participation with joint-venture partner Dongfeng Motor Group Co. and the French state.

Shares of ASML Holding (ASMLD) jumped 7.2% after the Dutch semiconductor-equipment maker reiterated its forecast for the first half of 2014 and posted a 62% rise in fourth-quarter net profit.

Sage rose 4% as the U.K. business-software maker said trading across all its regions remains in line with forecasts and it is on course to deliver its 6% organic-revenue growth target in 2015.

On the downside, shares of ABB Ltd. fell 4% after the power-and-technology company said fourth-quarter earnings will be hit by around $260 million in costs linked to North Sea power projects and restructuring.

More broadly, investors digested a bigger-than-expected drop in U.K. unemployment, which sparked fears the Bank of England could raise interest rates earlier than previously anticipated. The joblessness rate for the three months to November fell to 7.1%, closing in on the central bank's threshold of 7% for considering raising interest rates.

The central bank said, however, in minutes from its January meeting -- also out on Wednesday -- that even if the 7% unemployment threshold were to be reached in the near future, there is no immediate need to raise the interest rate.

The U.K.'s FTSE 100 index was flat at 6,833.27. Elsewhere in Europe, the German DAX 30 index rose 0.2% to 9,753.37, aided by a 1% gain for Daimler AG and a 1.5% increase in Deutsche Telekom AG .

 
   French CAC 40 index  rose 0.4% to 4,339.76, with Renault SA   up 1.5%. 
 

Shares of Allianz SE fell 2.4% in Frankfurt in the wake of Tuesday's news that Mohamed A. El-Erian will step down from the role of chief executive officer for Pimco, a unit of Allianz, after a year of big outflows for the asset manager's flagship fund. The company said El-Erian will stay on the international executive committee of Allianz and advise its board of management on global economic and policy issues.

Gains in Europe were tempered by a mixed start for Wall Street. The Dow industrials (DJI) were hurt by a drop for shares of International Business Machines Corp. (IBM) , which reported fourth-quarter and full-year earnings outlooks that fell short of analysts estimates. Also read: IBM investors are weary of managed earnings.

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