By Preeti Upadhyaya, MarketWatch
LONDON (MarketWatch) -- U.K. stocks traded mixed Thursday as
investors showed caution following a clutch of lackluster economic
data reported out of the U.S., the euro zone and China.
The FTSE 100 index ended the session essentially flat at
5,776.60.
Weak purchasing managers' data out of the eurozone signaled
further contraction, with business activity falling for the seventh
consecutive month.
Across the Atlantic, initial filings for jobless benefits rose
by 4,000, to a seasonally adjusted 372,000, in the week ended Aug.
18, according to the U.S. Labor Department.
And discouraging manufacturing data reported overnight out of
China prompted further calls for more stimulus by Beijing.
Stocks across Europe had climbed to start in the aftermath of
the release of minutes from the July 31-Aug. 1 meeting of the
Federal Reserve. The minutes suggested further monetary easing by
the U.S. central bank could be on the horizon.
In London, shares of mining firms came in for much investor
scrutiny as metals prices moved broadly higher in futures trading
Thursday.
Xstrata PLC rose 1.1%, while Glencore International PLC rose
2.6%. Glencore is in the process of merging with Xstrata.
Randgold Resources Ltd. added 4.2% and Fresnillo PLC jumped
3.9%. Polymetal International PLC was up 1.9%.
Antofagasta PLC climbed 2.9% and Vedanta Resources PLC traded 1%
higher.
Shares of Anglo American PLC picked up 1.7% as BHP Billiton PLC
(BHP) moved 0.7% higher.
Bucking the trend in mining, Petropavlovsk PLC tumbled 16% after
reporting first-half net profit fell 90%. The miner, which trades
outside the FTSE 100, cited high depreciation charges, currency
translations and interest expenses on increased net debt.
Kazakhmys PLC also moved to the downside, off 3.4% after
reporting first-half results. It said its performance reflected
"lower metal prices and cost pressures."
Also Thursday, British American Tobacco PLC rose 1.5% as oil and
gas production firm Tullow Oil PLC added 1.2%.
Moving in the opposite direction, banks came under selling
pressure.
Shares of Royal Bank of Scotland Group PLC (RBS) surrendered
3.3% as Barclays PLC (BCS) shed 1.6% and Standard Chartered PLC
dropped 0.6%.
Evraz PLC slipped 0.4%. Selling in the steel firm ensued after
HSBC upgraded its rating to overweight from neutral.
IMI PLC dropped 2.6% after releasing first-half results. The
engineering company reported that the pace of revenue growth is
likely to slow in the second half, citing "weakening economic
conditions in Europe.
SABMiller PLC dropped 0.9% after Nomura Securities downgraded
the brewer to reduce from neutral.
Also ending lower, shares of National Grid PLC fell 1.1% as Wm.
Morrison Supermarkets PLC lost 1%.
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