By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Shares of Diageo PLC led the FTSE 100
lower on Thursday after the drinks maker flagged volatile demand in
emerging markets, while the broader U.K. market pared losses in
afternoon action after robust U.S. growth data.
The FTSE 100 index lost 0.1% to 6,538.45, closing at the lowest
since Dec. 18.
Diageo slid 4.7% after the drinks maker said demand had been
volatile in emerging markets in the first half of the year, with
sales in the Asia-Pacific region dropping 10%.
Johnson Matthey PLC gave up 0.5% after the chemicals company
said Finance Director Robert MacLeod has been appointed chief
executive, replacing Neil Carson, who is retiring after 10 years in
the job.
On a more upbeat note, shares of Royal Dutch Shell PLC (RDSB)
added 1.1% after the oil major said it would suspend drilling in
the U.S. Arctic region. It also said fourth-quarter profit dropped
71%.
British Sky Broadcasting Group PLC gained 4% after the
satellite-TV company posted a rise in first-half sales.
The London benchmark briefly jumped into positive territory in
midday trade after shares of HSBC Holdings PLC (HSBC) spiked 10%,
in what traders attributed to a "fat-finger" trade. HSBC shares
closed 0.6% higher.
The broader U.K. market was hit at the open by a data report
from China, which confirmed that the country's manufacturing sector
contracted in January. The HBSC purchasing managers index fell to
49.5, down from a 50.5 reading in December.
Later in the day, the benchmark started paring losses after data
showed the U.S. economy grew by a solid 3.2% in the final quarter
of last year.
On the data front in the U.K., numbers from the Bank of England
showed mortgage approvals in the U.K. rose in December to their
highest level in almost six years, providing further evidence that
the country's housing market continues to accelerate.
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