FTSE 100 rises as multi-sector gains offset weak miners following downbeat China data

Britains headline index rose on Thursday as gains in pharmaceutical, commercial property and energy stocks offset losses in miners after a preliminary gauge showed manufacturing activity in China growing at the slowest pace in three months in August.

The FTSE 100 index stood at 6 773.00 points at 8:50 GMT, up 0.26% on the day, having shifted in a daily range between 6 776.00 and 6 752.00. The blue chip index fell by 0.35%, or 23.83 points, on Wednesday to settle at 6 755.48 points, its first decline in six days.

A preliminary reading provided by HSBC and Markit Economics showed that manufacturing activity growth in China slid in August to the lowest in three months. The Flash China Manufacturing PMI registered at 50.3 in August from July’s final reading of 51.7. At the same time, the Flash China Manufacturing Output Index slid to 51.3 from 52.8 in July, also a three-month low.

Output, new orders and new export orders increased, but at a slower rate, while employment in the sector decreased at a faster rate.

In Europe, France’s manufacturing sector contracted at a faster pace, data by Markit showed, with France’s preliminary manufacturing PMI sliding to 46.5 in August from 47.8 in July. If confirmed, this would be the lowest since May 2013. Analysts had expected a flat reading. Values below the threshold of 50 indicate a contraction in the sector. Frances services sector marked growth with the respective PMI jumping to 51.1 from 50.4 a month earlier.

Germany’s manufacturing sector, however, outperformed economists’ projections, with the flash German manufacturing PMI registering at 52.0, compared to 52.4 in July, but beating predictions for a drop to 51.8. If confirmed, this would be the 14th straight month of expansion. Germanys services PMI also outperformed expectations for a drop to 55.7, having registered at 56.4 from 56.7 in July.

In the Eurozone, manufacturing activity growth fell to the lowest since July 2013. The flash manufacturing PMi slid to 50.8, trailing projections for a moderate drop to 51.3 from 51.8 in July. The services sector posted better performance, matching projections for a slowdown to 53.5 from 54.2 a month earlier.

In the UK, retail sales rose more than expected in July on strong demand for clothing. Core retail sales, excluding volatile auto sales and fuel, marked a 0.5% jump in July after contracting by 0.1% in June, beating economists projections for a 0.4% gain. Clothing and footwear sales rose by 0.8%, while food sales expanded by 0.4%.

Minutes from FOMCs July meeting showed the Federal Reserve might end its monetary stimulus earlier than expected but intends to keep the benchmark interest rate low for a “considerable time” after that. However, some participants voiced their discomfort with the committees forward guidance on keeping the benchmark interest rate at rock bottom for an extended period of time, saying a hike in borrowing costs might come sooner than they had initially expected.

Fed officials noted that “if convergence toward the committee’s objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated.”

Top movers

FTSE 100s top three gainers for the day were Schroders Plc, AstraZeneca Plc and GlaxoSmithKline Plc.

Schroders added 2.45%, or 57.00 pence, to trade at 2 387.00 pence at 8:35 GMT, while GlaxoSmithKline rose by 1.25%, or 17.75 pence, to 1 435.25 pence.

AstraZeneca was up 1.83%, or 78.50 pence, at 4 363.50 pence after Illumina announced strategic partnerships with drugmaker AstraZeneca, Janssen and Sanofi in the oncology area.

The blue-chip indexs top losers for the day were Fresnillo Plc, Kingfisher Plc and Randgold Resources Ltd.

Fresnillo lost 3.55%, or 34.50 pence, to trade at 938.00 pence at 8:42 GMT, while Randgold slid 1.48% to 4 923.00 pence. Kingfisher fell 1.30% to trade at 307.95 pence.

Additionaly, Anglo American slid 0.75%, or 12.00 pence, to 1 582 pence, while Rio Tinto lost 0.60%, or 20.75 pence, to trade at 3 437.25 pence. Antofagasta lost 0.37%, while Glencore Xstrata shed 0.20%, to trade at 816.00 and 359.78 pence, respectively.