By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Publishing company Pearson PLC led U.K.
stocks lower on Thursday after flagging tough trading this year,
while mining heavyweights declined after disappointing
manufacturing data from China.
The FTSE 100 index dropped 0.2% to 6,814.31, on track for the
lowest closing level in a week.
Shares of Pearson sank 7.8% after the publisher of the Financial
Times said it continues to face challenging trading conditions this
year.
Mining firms were also lower, after a "flash" version of the
HSBC/Markit China manufacturing purchasing managers' index fell to
a six-month low of 49.6, missing analyst expectations. A reading
below 50 signals contraction. The mining sector is sensitive to
growth indications from China as the country is a major user of
natural resources. Metals prices were mixed.
Shares of Glencore Xstrata PLC (GLCNF) lost 1.2%, BHP Billiton
PLC (BHP) fell 0.6% and Antofagasta PLC gave up 0.5%.
EasyJet PLC lost 2.6% after the budget airliner said it expects
to report a first-half pretax loss of between 70 million pounds
($116 million) and GBP90 million.
Also on decline, shares of SABMiller PLC dropped 1.6% after the
brewer said it plans to invest $110 million expanding production
capacity in Nigeria.
On a more upbeat note in London, shares of Marks and Spencer
Group PLC climbed 2.1% after Exane BNP Paribas lifted the retailer
to outperform from underperform. The analysts said the company had
endured three difficult years and profit declines, but that this is
about to change as it revamps its approach to e-commerce.
SSE PLC climbed 0.3% after the utility firm lifted its dividend
for the fiscal year 3% and reported a solid performance for the
year so far.
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