European shares advance on Fed minutes, Tesco rallies

jueves 8 de enero de 2015 05:16 GYT

* Pan-European FTSEurofirst 300 index rises 1.3 percent

* Retailer Tesco top gainer after trading update

* Stanchart to close bulk of global equities business

By Atul Prakash

LONDON, Jan 8 (Reuters) - European shares rose sharply on Thursday, tracking gains in the United States and Asia, as retail stocks rallied and the minutes from the Fed's recent meeting reassured investors that it was not in a hurry to start raising rates.

The FTSEurofirst 300 index of top European shares was up 1.3 percent at 1,347.70 points by 0856 GMT, helped by a 1.4 percent rise in the STOXX Europe 600 Retail index.

Shares in Britain's biggest grocer Tesco surged 5.8 percent, the top gainer in the FTSEurofirst 300 index, after saying it planned to sell assets and cut hundreds of millions of pounds of costs to fund lower prices in store. Peer Sainsbury was up 3.5 percent.

"Four Christmases and four profit warnings later, it seems Tesco has turned the corner and have a plan to deal with its self-inflicted troubles of last few years," Manish Singh, head of investment services at Crossbridge Capital, said.

"Tesco is still the largest UK retailer with over 30 percent market share and the numbers reported for this Christmas were better than anticipated. A lot of positive for markets to chew and cheer on even as non-payment of dividend is a negative."   Continuación...