LONDON Feb 19 European shares pared losses in
late trade on Wednesday, tracking a rally in Wall Street, with
WM Morrison gaining in the afternoon after a report that the
grocer may be taken over by private-equity firms.
The FTSEurofirst 300 mounted a recovery in thin volumes to
provisionally close up 0.1 percent at 1,338.27, as Wall Street
turned higher after a cautious start before U.S. Federal Reserve
minutes were released.
"We've seen the U.S. markets rally since they've opened, and
Europe has followed suit. Investors are hoping that policy is
going to be able to remain more supportive than some of the
markets are giving it credit for," said Will Hedden, a sales
trader at IG.
"We're not expecting tapering to come off the table, but Fed
should not be getting any more hawkish then we've seen
WM Morrison rallied 5 percent in just 10 minutes
after Reuters reported that bankers are working on debt-
financing packages of around 5 billion pounds ($8.35 billion) to
back a sale of the British supermarket chain to private-equity
"It seems like it's coming from a good source, and it'd been
speculated for a few weeks. If you're going after one of the
supermarkets, it's one of the easier targets ... and this is the
first credible story that it's moving forward," Hedden said.
"People like the story, and we've seen a lot of buying on
the back of it."