By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks inched higher to break a
five-day losing streak on Wednesday, after data showed the services
sector remained on a strong growth path at the start of 2014.
The FTSE 100 index pared a stronger gain back to close just 0.1%
higher at 6,457.89, after closing on Tuesday at its lowest level
since Dec. 13.
Data on the services industry supported the benchmark, with the
purchasing managers' index for the sector indicating solid
expansion. The PMI came in at 58.3 for January, down from 58.8 in
December, but with business confidence at the highest level since
March 2010.
"Although the pace of expansion slowed, we must remember that
growth was exceptionally strong in previous months, and also that
parts of the country saw record rainfall in January," said Chris
Williamson, chief economist at Markit, in a note.
"With business optimism about the future reaching the highest
for almost four years, we should see growth revive again in
February, hopefully as the weather improves and households and
businesses dry out from January's rainfall," he added.
Among notable movers in London, shares of RSA Insurance Group
PLC jumped 4.7% after the insurance company on Tuesday said it
hired Stephen Hester as new chief executive starting immediately.
Hester left Royal Bank of Scotland Group PLC (RBS) in September
after being CEO there for five years, overseeing the recovery
effort at the 81% state-owned bank.
Shares of GlaxoSmithKline PLC (GSK) rose 1.6% after the drug
maker said sales rose marginally last year despite China problems,
after two years of falling sales for the company.
ARM Holdings PLC (ARMHY) rose 2%, taking back part of a 5.9%
loss posted on Tuesday, when the microchip designer said it swung
to a loss in the fourth quarter.
On a more downbeat note, shares of Hargreaves Lansdown PLC slid
10% after the investment manager reported a jump in profit, but
failed to meet the ambitious expectations of the market.
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