By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Most U.K. stocks closed in the red
Thursday after weaker-than-expected Chinese factory data created
concerns about global growth, with banks and resource firms posting
some of the biggest losses.
The FTSE 100 index dropped 0.8% to end at 6,773.28, the lowest
closing level in more than a week.
Shares of Pearson sank 8.2% after the publisher of the Financial
Times said it continues to face challenging trading conditions this
year.
Resource firms were also lower, after a "flash" version of the
HSBC/Markit China manufacturing purchasing managers index fell to a
six-month low of 49.6, missing analyst expectations. A reading
below 50 signals contraction. The resource sector is sensitive to
growth indications from China as the country is a major user of
natural resources. Metals prices were mixed.
Among miners, shares of Glencore Xstrata PLC (GLCNF) and Rio
Tinto PLC (RIO) both lost 0.9%, while BHP Billiton PLC (BHP) fell
0.5%.
In the energy sector, BG Group PLC gave up 1.3% and BP PLC (BP)
shed 1.1%.
Banks also dropped. Shares of HSBC Holdings PLC (HSBC) fell1.5%
and Royal Bank of Scotland Group PLC (RBS) eased 0.9%.
EasyJet PLC lost 4.1% after the budget airliner said it expects
to report a first-half pretax loss of between 70 million pounds
($116 million) and GBP90 million.
Also on decline, shares of SABMiller PLC dropped 2% after the
brewer said it plans to invest $110 million expanding production
capacity in Nigeria.
On a more upbeat note in London, shares of Marks and Spencer
Group PLC climbed 2.6% after Exane BNP Paribas raised the retailer
to outperform from underperform. The analysts said the company had
endured three difficult years and profit declines, but that it's
about to change as it revamps its approach to e-commerce.
SSE PLC climbed 0.2% after the utility firm lifted its dividend
for the fiscal year 3% and reported a solid performance for the
year so far.
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