London close: FTSE closes in the red after raft of data

London stocks finished lower on Friday as a better-than-expected US non-farm payrolls report failed to lift investors’ spirits.

The US non-farm payrolls increased 215,000 last month, beating estimates of 205,000 jobs, according to the Labor Department.

The unemployment rate rose to 5% in March from 4.9% the prior month, surprising analysts who had anticipated no change.

However, the participation rate, or the share of working-age Americans who are employed or at least looking for a job, rose to 63% in March from 62.9% in February. It was ahead of estimates for an unchanged rate and the highest since March 2014.

Average hourly earnings rose 2.3% year-on-year in March, compared to analysts' projections for the same rate of growth as the previous month at 2.2%.

"Another good month of hiring in the US will encourage further chatter in some corners of the Fed moving closer to hiking interest rates again, but signs of weakening economic growth mean policymakers are likely to be cautious and hold off until the global economy is showing greater vigour and the US economy more sparkle," said Chris Williamson, chief economist at Markit.

Meanwhile, traders digested a raft of reports on the manufacturing industry.

Markit’s UK purchasing managers’ index came in at 51.0 in March, up slightly from February’s 34-month low of 50.8. Analysts had forecast a reading of 51.2. While the reading was above the 50 mark that signals an expansion in sector activity, the average for the first quarter of the year equalled the lowest since 2013, Markit said.

In the Eurozone, Markit’s PMI was revised higher to 51.6 in March from a previous estimate of 51.4, compared to expectations for no change.

China’s official manufacturing PMI rose to 50.2 in March from 49.0 the previous month, surpassing expectations for a reading of 49.3.

Caixin’s private PMI on China manufacturing increased to 49.7 in March from 48 in February, exceeding forecasts of 48.3.

ISM’s US manufacturing index jumped to 51.8 in March from 49.5 in February, ahead of predictions of 50.7.

Markit’s US manufacturing PMI was revised to 51.5 in March from a previous estimate of 51.4, as expected.

In commodities, oil prices were under the cosh after remarks from Saudi Arabia’s deputy crown prince added to worries about an oversupplied market.

Mohammed bin Salman said in an interview with Bloomberg that Saudi Arabia will freeze its oil output only if Iran and other major producers agree to curb theirs, which was seen by analysts to suggest a deal would be unlikely.

Brent crude plunged 4.1% to $38.74 per barrel and West Texas Intermediate slumped 3.6% to $36.99 per barrel at 1625 BST.

On the company front, Shire’s shares gained after Exane BNP Paribas reiterated ‘outperform’ rating and issued a target price of 5,700, indicating a potential increase of 44.27% from the current price of 3,951.

Inmarsat jumped after the satellite communications group received notification from US-based Ligado Networks, previously known as LightSquared, that it has decided to take the 30 MHz option under the pair's cooperation agreement.

Postal operator Royal Mail declined as it prepared for a fresh dispute with unions. The deadline for a new pay deal passed on Thursday night without resolution, and issues over pensions remained.

Beleaguered heavy engineer Rolls-Royce was also down, after being drawn into the unfolding bribery scandal in the oil industry along with Petrofac. Unaoil lobbyists, working on behalf of Rolls-Royce, allegedly discussed inflating prices charged to Iraq to boost earnings from a large generator supply contract.

Market Movers

FTSE 100 (UKX) 6,141.26 -0.54%
FTSE 250 (MCX) 16,830.15 -0.57%
techMARK (TASX) 3,123.83 -0.04%

FTSE 100 - Risers

Shire Plc (SHP) 4,082.00p 3.11%
Smith & Nephew (SN.) 1,166.00p 1.57%
ARM Holdings (ARM) 1,027.00p 1.28%
Persimmon (PSN) 2,108.00p 1.10%
Carnival (CCL) 3,787.00p 0.93%
Next (NXT) 5,450.00p 0.93%
Wolseley (WOS) 3,975.00p 0.91%
Mondi (MNDI) 1,348.00p 0.90%
Compass Group (CPG) 1,238.00p 0.81%
CRH (CRH) 1,982.00p 0.81%

FTSE 100 - Fallers

Glencore (GLEN) 149.20p -5.15%
Standard Chartered (STAN) 453.30p -4.07%
Antofagasta (ANTO) 452.90p -3.52%
Fresnillo (FRES) 921.50p -3.25%
Rolls-Royce Holdings (RR.) 660.00p -3.23%
Pearson (PSON) 848.50p -3.03%
Burberry Group (BRBY) 1,327.00p -2.78%
Anglo American (AAL) 538.40p -2.48%
United Utilities Group (UU.) 901.50p -2.33%
Schroders (SDR) 2,621.00p -2.31%

FTSE 250 - Risers

Ocado Group (OCDO) 300.70p 3.65%
UDG Healthcare Public Limited Company (UDG) 597.00p 2.23%
SVG Capital (SVI) 511.50p 1.99%
Mitie Group (MTO) 262.00p 1.95%
Cable & Wireless Communications (CWC) 78.50p 1.88%
Auto Trader Group (AUTO) 397.00p 1.79%
Polypipe Group (PLP) 324.80p 1.75%
Centamin (DI) (CEY) 89.85p 1.64%
Micro Focus International (MCRO) 1,594.00p 1.53%
Hays (HAS) 122.80p 1.49%

FTSE 250 - Fallers

Petrofac Ltd. (PFC) 874.50p -5.05%
Zoopla Property Group (WI) (ZPLA) 238.60p -4.56%
OneSavings Bank (OSB) 319.00p -4.15%
CLS Holdings (CLI) 1,468.00p -3.93%
Cobham (COB) 209.30p -3.59%
Acacia Mining (ACA) 271.50p -3.48%
Ted Baker (TED) 2,632.00p -3.34%
Inchcape (INCH) 699.50p -3.32%
Aberdeen Asset Management (ADN) 269.30p -2.92%
AO World (AO.) 173.90p -2.85%