London close: Shares start 2015 in the red after weak manufacturing data

The FTSE 100 Index closed 18.29 points adrift at 6547.8 after a purchasing managers index showed UK activity in the sector slowing to a three-month low in December.

The Eurozone’s final manufacturing PMI was revised down to 50.6 from a preliminary print of 50.1 for November and an estimate by analysts of 50.8, largely due to a lower figure in France, although any figure above 50 still signals growth.

US manufacturing PMI figures were also weak as the index hit a six-month low.

The strength of the dollar against the euro and sterling did not keep the Dow Jones Industrial Average from opening stronger than its 2014 close, although it later fell back in the red.

Spreadex financial analyst Connor Campbell said: “The increased beating of the Fed’s interest rate rise drum has spurred the dollar to near nine-year highs, and the greenback looks unlikely to let go of last year’s gains any time soon.”

The price of a barrel of Brent crude had fallen nearly one percentage point to $56.8 by the close in London, although West Texas Intermediate had lifted slightly to $53.4 a barrel.

European Central Bank president Mario Draghi helped to lift stocks in early trading by saying the ECB was preparing to change the size and make-up of its stimulus measures.

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, apparently due to factors including weakness in export demand.

Oil futures retreated after figures published by Iraq and Russia revealed their countries' level of crude production reached record levels in December.

RBS falls amid fears about US fine provisions

Shares in Royal Bank of Scotland fell 5.3p to 389.1p after reports claiming that the £2bn provision set aside by the bank to pay US fines for marketing toxic mortgage-backed securities could be more than three times too small.

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. Shares rose 7.5p to 47p.

The Egyptian government paid 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 incrase its activity in the country. BG stock fell 0.8p to 864.2p.

Irish bookmaker Paddy Power fell €1.51 to €66.5 after announcing that new chief executive Andy McCue had taken over from Patrick Kennedy.

Power generator rental group Aggreko dropped 7p to 1497p as it announced that new chief executive, Chris Weston, took up his position on Friday.

techMARK 2,958.69 -0.09%
FTSE 100 6,547.80 -0.28%
FTSE 250 16,051.96 -0.21%

FTSE 100 - Risers
TUI AG Reg Shs (Post- 16/12/14)(DI) (TUIJ) 1,055.00p +2.33%
Weir Group (WEIR) 1,883.00p +1.73%
Sports Direct International (SPD) 723.00p +1.69%
Associated British Foods (ABF) 3,194.00p +1.30%
Ashtead Group (AHT) 1,165.00p +1.13%
Bunzl (BNZL) 1,782.00p +1.02%
3i Group (III) 454.00p +0.84%
Randgold Resources Ltd. (RRS) 4,413.00p +0.75%
easyJet (EZJ) 1,683.00p +0.72%
Royal Dutch Shell 'A' (RDSA) 2,168.00p +0.67%

FTSE 100 - Fallers
Coca-Cola HBC AG (CDI) (CCH) 1,188.00p -3.26%
Barratt Developments (BDEV) 460.50p -2.23%
Taylor Wimpey (TW.) 134.90p -2.10%
Smith & Nephew (SN.) 1,165.00p -1.94%
British Land Co (BLND) 762.00p -1.93%
SABMiller (SAB) 3,301.00p -1.79%
Meggitt (MGGT) 510.50p -1.64%
G4S (GFS) 273.70p -1.51%
British American Tobacco (BATS) 3,452.50p -1.36%
Sainsbury (J) (SBRY) 243.40p -1.34%

FTSE 250 - Risers
Alent (ALNT) 337.00p +4.98%
Nostrum Oil & Gas (NOG) 440.00p +4.76%
Ocado Group (OCDO) 415.90p +3.98%
UDG Healthcare Public Limited Company (UDG) 396.40p +3.55%
Genus (GNS) 1,292.00p +3.28%
Wood Group (John) (WG.) 615.50p +3.19%
Centamin (DI) (CEY) 60.75p +3.14%
Computacenter (CCC) 604.50p +3.07%
Petra Diamonds Ltd.(DI) (PDL) 199.70p +2.94%
Just Eat (JE.) 318.30p +2.78%

FTSE 250 - Fallers
Supergroup (SGP) 851.50p -4.33%
Bwin.party Digital Entertainment (BPTY) 112.90p -4.16%
Soco International (SIA) 291.10p -4.05%
Halma (HLMA) 660.50p -3.93%
Afren (AFR) 45.61p -3.53%
Saga (SAGA) 150.00p -3.29%
Infinis Energy (INFI) 213.10p -3.14%
Brown (N.) Group (BWNG) 371.70p -3.05%
Millennium & Copthorne Hotels (MLC) 571.50p -3.05%
Enterprise Inns (ETI) 111.20p -2.97%