London close: FTSE closes lower as traders sift through data

The FTSE 100 closed in the red on Thursday following a batch of downbeat economic data.

UK services activity declined much more than expected in February as economic growth slowed to its weakest for almost three years, according to Markit/CIPS data.

The Markit/CIPS services purchasing managers' index (PMI) sank to 52.7 for February, well short of the expected 55.1 and the previous month's 55.6. A reading above 50 signals an expansion while a level below that indicates a contraction.

Caixin’s PMI on China services also fell to 51.2 in February from 52.4 in January, adding to worries about the health of the world’s second largest economy.

Markit's US services PMI was revised lower to 49.7 in February from a flash estimate of 49.8. It compared to 52.3 in January and analysts’ expectations for a reading of 50.

The Institute for Supply Management’s non-manufacturing purchasing managers’ index retreated from a reading of 53.5 in January to 53.4 in February - the lowest level in at least a year. However, it t was better than the 53.1 which economists had projected.

The US also saw the release of figures on factory orders. The Commerce Department said factory orders rose 1.6% in January, missing expectations for a 2.1% increase.

Closer to home, Nationwide revealed UK house prices rose less than expected in February. House prices increased 0.3% on the month and 4.8% on the year, compared to analysts’ estimates of 0.5% and 5% growth respectively.

Separately, Halifax data showed UK house prices subsided 1.4% month-on-month in February, well below the consensus for a flat month after two months of strong gains.

Looking ahead to Friday, focus will be on the all-important US non-farm payrolls report, which the Federal Reserve is taking into consideration as it determines the timing of its next change to interest rates.

Meanwhile, oil prices wavered throughout Thursday’s session. At 1639 GMT, Brent crude rose 0.48% to $37.11 per barrel and West Texas Intermediate increased 0.83% to $34.95 per barrel.

On the company front, Admiral shares surged after it reported record annual pre-tax profits of £377m for 2015, up 6% on the previous year.

CRH rallied after reporting a 33% jump in full year earnings before interest, taxes, depreciation and amortisation to €2.2bn.

Inmarsat slumped as it said full year pre-tax profit slid 17.3% to $282m on flat revenues of $1.27bn.

Housebuilders were in the red including Taylor Wimpey, Persimmon and Barratt Developments, after ill-received data on house prices.

Imperial Brands was also losing, after Goldman Sachs downgraded the tobacco company's stock to a neutral rating in a research note on Thursday.

Market Movers

FTSE 100 (UKX) 6,130.46 -0.27%
FTSE 250 (MCX) 16,745.64 0.10%
techMARK (TASX) 3,133.25 -1.57%

FTSE 100 - Risers

Admiral Group (ADM) 1,919.00p 9.03%
Glencore (GLEN) 143.00p 5.61%
Rolls-Royce Holdings (RR.) 716.00p 5.29%
Intertek Group (ITRK) 3,003.00p 4.82%
CRH (CRH) 1,935.00p 4.59%
Centrica (CNA) 219.60p 4.32%
Standard Chartered (STAN) 469.95p 3.32%
GKN (GKN) 293.40p 3.09%
Aberdeen Asset Management (ADN) 269.60p 3.02%
Travis Perkins (TPK) 1,849.00p 2.95%

FTSE 100 - Fallers

Persimmon (PSN) 1,998.00p -6.81%
Whitbread (WTB) 3,799.00p -6.17%
Inmarsat (ISAT) 924.00p -4.35%
HSBC Holdings (HSBA) 451.45p -4.27%
ITV (ITV) 232.30p -3.57%
Carnival (CCL) 3,417.00p -3.26%
TUI AG Reg Shs (DI) (TUI) 1,026.00p -3.21%
Shire Plc (SHP) 3,755.00p -3.02%
Merlin Entertainments (MERL) 451.20p -2.70%
International Consolidated Airlines Group SA (CDI) (IAG) 531.50p -2.57%

FTSE 250 - Risers

Vedanta Resources (VED) 352.60p 12.94%
Aggreko (AGK) 1,008.00p 12.56%
AO World (AO.) 187.40p 9.78%
Tullow Oil (TLW) 194.10p 8.86%
Ashmore Group (ASHM) 258.50p 6.38%
Drax Group (DRX) 265.10p 6.17%
Just Eat (JE.) 405.90p 6.09%
Petrofac Ltd. (PFC) 941.50p 5.31%
Serco Group (SRP) 107.10p 5.00%
OneSavings Bank (OSB) 286.60p 4.60%

FTSE 250 - Fallers

Cobham (COB) 239.60p -7.49%
Dunelm Group (DNLM) 965.00p -5.21%
Thomas Cook Group (TCG) 102.90p -5.07%
Paddy Power Betfair (PPB) 9,880.00p -4.54%
UDG Healthcare Public Limited Company (UDG) 533.00p -4.48%
Crest Nicholson Holdings (CRST) 541.00p -3.74%
Stagecoach Group (SGC) 267.10p -3.68%
NCC Group (NCC) 282.30p -3.12%
Jardine Lloyd Thompson Group (JLT) 822.00p -3.07%
Indivior (INDV) 161.00p -2.95%