By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Shares of Unilever PLC added pressure on
the U.K.'s FTSE 100 index on Tuesday, sending the benchmark to the
lowest level since late August, while mining firms slipped after
Chinese manufacturing data missed expectations.
The FTSE 100 index closed slightly lower at 6,460.01, marking
the third straight day in the red.
Shares of consumer-products company Unilever (UL) posted one of
the biggest losses in the index, off 3.4%, after the firm late
Monday downgraded its sales-growth expectations for the third
quarter due to a slowdown in emerging markets.
Peer firm Reckitt Benckiser Group PLC erased 1.3%.
Mining firms also added pressure on the London benchmark after
the official monthly manufacturing Purchasing Managers Index for
the country missed analyst expectations. The gauge rose to 51.1 in
September from 51 in August, below an estimate compiled by Dow
Jones Newswires of 51.6.
Shares of Glencore Xstrata PLC (GLCNF) gave up 1.8%, Anglo
American PLC lost 2.2%, Rio Tinto PLC (RIO) fell 0.9% and BHP
Billiton PLC (BHP) dropped 0.8%. Metals prices were mostly
lower.
Oil prices were also lower, weighing on the U.K. oil firms.
Shares of Royal Dutch Shell PLC (RDSB) gave up 0.9%, BG Group PLC
shed 0.4% and BP PLC (BP) lost 0.2%.
On a more upbeat note in London, shares of heating- and
plumbing-products supplier Wolseley PLC (WOSYY) picked up 3.1%
after the firm said it would return 300 million pounds ($487.1
million) to shareholders in a special dividend after reporting a
rise in full-year profit and revenue.
On the data front in London, the Markit/CIPS manufacturing
purchasing managers' index eased to 56.7 in September from August's
21/2 year peak of 57.1. A reading above 50 indicates expansion. The
labor market also showed further signs of improvement, as the rate
of job creation climbed to a 28-month peak.
"The small easing in the manufacturing PMI does not change the
picture of a U.K. economy growing rapidly. The economy should see a
very strong second half of the year driven by the consumer," said
Rob Wood, chief U.K. economist at Berenberg, in a note.
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