Morgan Stanley downgraded several European banks including UBS and Northern Rock. UBS shares dipped 0.5%, Northern Rock shares lost the same amount.

Oil and gold

Oil rose to a one-month high as cold weather swept eastward across the U.S., the world biggest energy user, spurring demand for heating fuel. Crude oil for January delivery rose 54 cents to $61.53 a barrel in after-hours trading on the NYME. The contract traded at $61.43 in early trading in London. Brent crude oil for January rose 49 cents to $61.70 a barrel in electronic trading on the ICE Futures exchange in London. Gold traded in London at $638.25 per troy ounce, up from $636.00 late Tuesday.

Currencies

The U.S. dollar was higher against other major currencies in European trading Wednesday morning. The euro was quoted at $1.3160, down from $1.3189 late Tuesday. The British pound was at $1.9490, down from $1.9509. The dollar bought 116.19 Japanese yen, up from 116.10.