London Markets: Europe weakness weighs on U.K. stocks

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) ? U.K. stocks dropped on Wednesday, with the benchmark index tracking losses across Europe, after weak manufacturing data reminded investors of the region?s debt and growth issues.

The FTSE 100 index /quotes/zigman/3173262 UK:UKX +0.17% ?lost 0.3% to 5,782.88, adding to a 1.4% loss on Tuesday.

Politicizing the yuan

The yuan recently hit a 19-year high amid renewed cries for China to allow its currency to appreciate further. The WSJ's Mark Cranfield explains how politics may be influencing moves on China's currency.

Banks were among major decliners, with Lloyds Banking Group PLC /quotes/zigman/126322 UK:LLOY -0.65% ? /quotes/zigman/255656/quotes/nls/lyg LYG -2.31% ?down 1.8%, Barclays PLC /quotes/zigman/152323/quotes/nls/bcs BCS -1.72% ? /quotes/zigman/301787 UK:BARC -1.03% ?off 1.6% and Royal Bank of Scotland Group PLC /quotes/zigman/10330253 UK:RBS -0.61% ? /quotes/zigman/530544/quotes/nls/rbs RBS -2.32% ?losing 1.6%.

Sentiment across Europe and the U.K. was hurt after October purchasing-managers-index readings for the euro zone and the closely watched German Ifo business-climate index proved weaker than expected.

The PMI reading for the euro zone dropped to a 40-month low of 45.8 from 46.1 in September. See: Euro extends slide on weak PMI, German Ifo data

Mining firms were also lower, even as most metals prices were higher. Vedanta Resources PLC /quotes/zigman/336962 UK:VED +1.07% ?gave up 1.1%, Rio Tinto PLC /quotes/zigman/155899 UK:RIO -0.13% ? /quotes/zigman/182541/quotes/nls/rio RIO -2.92% ? /quotes/zigman/176317 AU:RIO -0.97% ?fell 1.1% and BHP Billiton PLC /quotes/zigman/184879 UK:BLT +0.40% ? /quotes/zigman/270355/quotes/nls/bhp BHP -2.41% ? /quotes/zigman/180893 AU:BHP -1.38% ?lost 0.7%.

Oil firms, however, inched higher and found some support in encouraging data from China. The flash HSBC China manufacturing Purchasing Managers? Index rose to 49.1 in October, hitting a three-month high. See: China factory data add to ?soft landing? view

Royal Dutch Shell PLC /quotes/zigman/359955 UK:RDSB +0.99% ? /quotes/zigman/379012/quotes/nls/rds.b RDS.B -1.81% ?added 0.7%, BP PLC /quotes/zigman/210014 UK:BP +0.60% ? /quotes/zigman/247026/quotes/nls/bp BP -2.93% ?picked up 0.5% and BG Group PLC /quotes/zigman/249967 UK:BG +0.34% ?inched 0.2% higher.

Among other notable movers in London, advertising firm WPP PLC /quotes/zigman/526756 UK:WPP -0.98% ?fell 1% after UBS cut the stock to neutral from buy.

/quotes/zigman/3173262

UK : FTSE Indices

Volume: 0.00

Oct. 24, 2012 12:01p

/quotes/zigman/126322

UK : U.K.: London

Volume: 106.13M

Oct. 24, 2012 12:01p

Market Cap

?28.48 billion

Rev. per Employee

?360,302

/quotes/zigman/255656/quotes/nls/lyg

US : U.S.: NYSE

Volume: 825,820

Oct. 23, 2012 4:04p

Rev. per Employee

$552,300

/quotes/zigman/152323/quotes/nls/bcs

US : U.S.: NYSE

Volume: 4.67M

Oct. 23, 2012 4:00p

Rev. per Employee

$487,429

/quotes/zigman/301787

UK : U.K.: London

Volume: 26.62M

Oct. 24, 2012 12:01p

Market Cap

?28.62 billion

Rev. per Employee

?285,159

/quotes/zigman/10330253

UK : U.K.: London

Volume: 5.46M

Oct. 24, 2012 12:00p

Market Cap

?31.39 billion

Rev. per Employee

?254,327

/quotes/zigman/530544/quotes/nls/rbs

US : U.S.: NYSE

Volume: 286,355

Oct. 23, 2012 4:03p

Rev. per Employee

$423,098

/quotes/zigman/336962

UK : U.K.: London

Volume: 191,543

Oct. 24, 2012 11:58a

Rev. per Employee

?272,834

/quotes/zigman/155899

UK : U.K.: London

Volume: 2.18M

Oct. 24, 2012 12:01p

Market Cap

?45.16 billion

Rev. per Employee

?527,959

/quotes/zigman/182541/quotes/nls/rio

US : U.S.: NYSE

Volume: 3.23M

Oct. 23, 2012 4:04p

Rev. per Employee

$836,487

/quotes/zigman/176317

AU : Australia: Sydney

Volume: 2.66M

Oct. 24, 2012 6:11p

Rev. per Employee

$821,334

/quotes/zigman/184879

UK : U.K.: London

Volume: 3.27M

Oct. 24, 2012 12:01p

Market Cap

?42.96 billion

Rev. per Employee

?983,627

/quotes/zigman/270355/quotes/nls/bhp

US : U.S.: NYSE

Volume: 3.63M

Oct. 23, 2012 4:02p

Market Cap

$115.49 billion

/quotes/zigman/180893

AU : Australia: Sydney

Volume: 10.51M

Oct. 24, 2012 5:40p

Market Cap

$112.86 billion

/quotes/zigman/359955

UK : U.K.: London

Volume: 1.29M

Oct. 24, 2012 12:01p

Market Cap

?138.52 billion

/quotes/zigman/379012/quotes/nls/rds.b

US : U.S.: NYSE

Volume: 1.35M

Oct. 23, 2012 4:02p

Market Cap

$221.73 billion

/quotes/zigman/210014

UK : U.K.: London

Volume: 12.52M

Oct. 24, 2012 12:01p

Market Cap

?85.82 billion

/quotes/zigman/247026/quotes/nls/bp

US : U.S.: NYSE

Volume: 8.66M

Oct. 23, 2012 4:00p

Market Cap

$135.48 billion

/quotes/zigman/249967

UK : U.K.: London

Volume: 2.96M

Oct. 24, 2012 12:00p

Market Cap

?45.94 billion

/quotes/zigman/526756

UK : U.K.: London

Volume: 1.82M

Oct. 24, 2012 12:00p

Market Cap

?10.61 billion

Rev. per Employee

?90,485

Sara Sjolin is a MarketWatch reporter, based in London.

Words used in this article:

Source: http://feeds.marketwatch.com/~r/marketwatch/financial/~3/jD4MzeHzA4E/story.asp

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