LONDON MARKETS: U.K. Stocks Eye Third Straight Session Of Gains

By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- U.K. stocks rose Monday, moving toward a third consecutive rise, gaining alongside the broader European market as investors look ahead to the possible launch of a bond-buying program from the European Central Bank.

The FTSE 100 rose 0.4% to 6,577.82, with only five components moving lower. Topping the benchmark were shares of supermarket chain Tesco PLC as they gained 3.1%. Morgan Stanley upgraded Tesco to overweight from equal weight.

But losing ground were miner Rio Tinto PLC and oil producer BP PLC as those shares were off 0.7% and 0.2%, respectively.

BHP Billiton PLC (BHP) shares were off 0.4% following a Reuters report that the miner may have to cut $4 billion in planned spending on U.S. shale wells. The report said BHP may also write down shale assets as it grapples with falling prices for key metals, including iron ore and copper.

Rounding out the decliners early in the session, energy-engineering firm Weir Group PLC shed 0.2%, as did oil firm BG Group PLC , which was raised to neutral from overweight by J.P. Morgan.

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