Travel stocks advanced in Europe as oil prices sank, with airline Deutsche Lufthansa rising 1.2% and Air France-KLM gaining 0.4% after posting a 3.3% rise in passengers carried in December.

Decliners

Shares in large-cap BP declined 1.7% after it said that it expects disappointing fourth-quarter results. U.K. retailer Marks & Spencer was another decliner, down 1.9% after strong recent gains. Merrill Lynch also downgraded German insurer Allianz to neutral from buy. Allianz shares lost 0.3%

Beiersdorf fell 1.6% on profit taking after the maker of Nivea skin cream reported a 7% increase in full-year sales in 2006.

Oil and gold

Crude oil declined for a second day in New York, falling below $56 a barrel, as mild weather in the U.S. cut heating fuel demand and increased stockpiles. Crude oil for February delivery fell 58 cents, or 1%, to $55.51 in after-hours electronic trading on the New York Mercantile Exchange. In London, Brent crude for February settlement declined 53 cents, or 1%, to $55.07 a barrel.

Gold rose for a second day in London on slowing sales by investment funds and increased demand from jewelers. Gold for immediate delivery rose $2.90, or 0.5%, to $612.90 an ounce in early trade in London.

Currencies

The euro retreated against the dollar. The euro was at $1.3030, from $1.3024. The yen fell to 119.17 against the dollar in early trade in London, from 118.78 late in New York yesterday. It traded at 155.28 per euro, from 154.71, after reaching a record 158.06 on Jan. 3. Against the euro, the pound was at 67.09 pence in London from 67.22 pence on Jan. 8. It also traded at $1.9418 versus the dollar, from $1.9378.