Weir Group rallies in firm U.K. market

LONDON (MarketWatch) � U.K.�s benchmark stock index advanced on Wednesday, as banks partly rebounded from the previous day�s steep Italy-driven selloff, while Weir Group PLC jumped after a well-received earnings report.

The FTSE 100 index UK:UKX gained 0.9% to close at 6,325.88, climbing back from a 1.3% loss posted on Tuesday when inconclusive election results in Italy stirred worries of renewed political instability in Europe.

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Among notable movers in the U.K. index, shares of Weir Group UK:WEIR gained 7.3%. The engineering firm posted a rise in pretax profit and said that it expects to deliver low-single-digit revenue growth. See: Weir Group year pretax net up; sees revenue growth.

Also among notable movers, shares of HSBC Holdings PLC UK:HSBA HBC HK:5 rose 1.7% after Investec Securities lifted the bank to add from hold.

Other banks were also on the rise, with Barclays PLC UK:BARC BCS up 1.6% and Standard Chartered PLC UK:STAN 1.5% higher.

On the economic front, the Office for National Statistics said the U.K. economy shrank 0.3% in fourth quarter of 2012, unrevised from the previous estimate.

�The big question remains as to whether the economy will contract again in the first quarter, thereby constituting a triple-dip recession,� Chris Williamson, chief economist at Markit, said in emailed comments.

Reuters Shares of HSBC rise after a broker upgrade.

�The concern as to whether this will affect the country�s AAA credit rating has of course passed, but a renewed slide into recession would lead to further calls for [Chancellor of the Exchequer George Osborne] to boost growth in the upcoming budget and for the Bank of England to undertake more quantitative easing,� he said.

Last week, Moody�s Investors Service slashed the U.K.�s credit rating to Aa1 from Aaa. See: Moody's cuts U.K. AAA rating by one notch.

Among other stocks on the move in London, oil firms showed upbeat performances as oil prices moved higher. BG Group PLC UK:BG �gained 1.4%, Royal Dutch Shell PLC UK:RDSB �RDS.B �added 1.1% and BP PLC picked up 0.6%. See: Oil holds on to gains after U.S. supply update

Outside the main index in London, shares of online betting firm Bwin.Party Digital Entertainment PLC UK:BPTY �soared 8.9%, after New Jersey Gov. Chris Christie late Tuesday signed a bill authorizing online gambling in the state. See: Betting firms soar as NJ approves gambling bill. �

And in Dublin, Ryanair Holdings PLC IE:RY4B �slipped 0.7%. The European Commission blocked the airline�s latest bid to buy its Irish rival Aer Lingus Group PLC IE:EIL1 , citing concerns of higher fares that would hurt consumers. See: EU blocks Ryanair bid for Aer Lingus