Next shares up 5%, M&S up 3%

UK retail stocks were on the front foot today after half-year results from John Lewis and Next showed all was not lost in the beleaguered sector.

Next shares jumped 5% and Marks & Spencer rose 3%, although the attention of the wider market was focused on the eurozone after Moody’s downgraded the credit ratings of French banks Societe Generale and Credit Agricole as worries grew about their potential exposure to the debts of Greece.

The decision had been widely expected and meant European markets held firm, with the FTSE 100 Index 28.8 points stronger at 5202.9.

Employee-owned John Lewis Partnership helped the mood in the general retail sector after it said like-for-like sales for the last six weeks were up 1.9% at its department stores and by 3.9% at supermarket chain Waitrose.

Profits were down 18% overall but like Next, which posted an 8.5% increase, the group said it was making progress in the face of tough conditions.

Marks & Spencer added 9.7p to 328.25p, B&Q owner Kingfisher rose 6.45p to 240.35p ahead of results tomorrow, while Debenhams cheered 2.8p to 55.3p.

Shares in oil giant BP were also more than 3% higher, up 12.9p to 394.5p, amid speculation that a key report into last year’s Gulf of Mexico rig explosion and oil spill will spread the blame for the disaster.