London open: Stocks weighed down by weak Eurozone data

UK stocks started the year slightly higher as those traders back at their screens after the Christmas break kept one eye on a falling euro and another on latest data about the state of the Eurozone’s manufacturing sector.

As of 08:53 the Footsie had gained 5.4 points to 6,570.19.

Speaking to German daily Handelsblatt, European Central Bank President Mario Draghi said: “The risk that we don’t fulfill our mandate of price stability is higher than it was six months ago.”

That sent the euro/dollar lower by 0.47% to 1.2045 and cable down by another 0.40% to 1.5519.

Eurozone manufacturing data revised lower

Markit’s Eurozone manufacturing sector purchasing managers’ index (PMI) for December was revised lower, to reveal a reading of 50.6 last month, from 50.1 in November and against a consensus of 50.8. That came as the sub-indices tracking production, new orders and employment remained at levels consistent with almost no growth, the economic data group said.

Overnight, the ‘official’ Chinese manufacturing sector purchasing managers’ index retreated to the 50.1 point mark, from 50.3 in the month before and versus a consensus of 50.

A government statistician reportedly blamed the retreat on weakness in export demand, falling factory gate prices and the country’s move towards a more service-oriented economy.

Meanwhile, the Financial Times' (FT) Friday edition led with a story regarding economists’ worries regarding a potentially inconclusive result at this year’s May election.

Airports Commission chairman and former CBI boss Sir Howard Davies said “a messy coalition could be negative. Major projects would be thrown into uncertainty, and there would be market doubts about the government’s ability to take needed tough decisions,” the FT reported.

Quindell to sell assets to raise cash

In a bid to boost its working capital, Quindell, which has attracted attention due to share-dealings by its directors, entered into exclusivity arrangements with a third party on 31 December 2014 in respect of the possible disposal of an operating division of the group.

The Egyptian government has made a payment of the equivalent of $350m to BG Group as part of an agreement to repay debts. The FTSE 100 gas producer said it was working with Cairo to recover the $920m still owed as well as looking to increase its activity in the country.

Irish bookmaker Paddy Power has a new chief executive after former boss Patrick Kennedy stepped down. Paddy Power said Andy McCue, formerly managing director of the group's retail UK & Ireland business, had taken up the role on Friday. Kennedy announced his intention to step down as chief executive at the company's annual meeting in May last year.

Power generator rental group Aggreko has announced that its new chief executive, Chris Weston, took up his position on Friday. Aggreko said Weston would spend his first few months travelling around the company, meeting staff and other key stakeholders to understand the business and its fundamentals.