Decliners

Swiss pharmaceutical company Roche lost 2.6% after it reported weaker-than expected guidance outlook. Roche posted a 36% rise in full-year profit that was in line with forecasts, but the outlook for 2007 disappointed as the company expects lower sales of pandemic influenza treatment Tamiflu. In the auto sector, BMW shares declined 1.7% in Frankfurt, after shareholder Allianz announced that it plans to sell about 16.1 million shares in the car maker.

Oil and precious metals

Oil advanced as the market is awaiting the US weekly stocks report that is expected to show a drop in distillate stocks following a recent cold snap in the Northeast of the country. In early trade in London front-month Brent crude contracts for March delivery added 67 cents at $59.08 a barrel, while front-month New York light sweet crude contracts for March delivery advanced 60 cents to $59.49 a barrel. Gold gained in London for a third consecutive day on talks that higher costs will give rise to demand for precious metals as a hedge against inflation. Gold for immediate delivery advanced $2.35, or 0.4%, to $655.65 an ounce in early trading in London. Silver climbed 6.37 cents, or 0.5%, to $13.685 an ounce today, palladium gained $1.50 to $342.50 an ounce and platinum moved $5.50 higher to $1,188.50 an ounce.

Currencies

The euro gained some ground against the U.S. dollar on Wednesday and the yen retreated from earlier gains as speculations circulate that the Japanese currency would be a significant topic at the upcoming meeting of G7 financial ministers. The 13-nation euro bought $1.2989 in morning European trading, marginally up from $1.2978 in New York late Tuesday. The British pound declined slightly to $1.9703 from $1.9704 on the likelihood that the Bank of England would surely keep its interest rate unchanged at 5.25% when it also meets on Thursday. The dollar was up to 120.66 Japanese yen from 120.08 yen on Tuesday.