By Carla Mozee, MarketWatch
Pound rises on strong services PMI
LONDON (MarketWatch) -- Stocks in the U.K. edged higher Tuesday,
with shares of Standard Life PLC and Aggreko PLC each gaining
following financial updates.
Meanwhile, the pound popped higher after U.K. services activity
hit its strongest level in eight months.
The FTSE 100 index picked up 0.1% to end at 6,682.48, its first
gain in five sessions.
Aggreko shares advanced 1.1% as the power-generator provider
said its interim dividend was raised 3% to 9.38 pence, from 9.11
pence a year ago.
Aggreko, which was a provider for the 2014 World Cup soccer
tournament, also backed its view that full-year underlying profit
will be at similar levels to 2013. Pretax profit in the first half
of 2014 fell 10%, hurt by exchange rates.
Shares of Standard Life gained 1.5% after the insurer, which
also manages funds, posted a 12% rise in first-half operating
profit.
On the losing end of the index, stock in Meggitt PLC dropped
4.7% following the aerospace-equipment company's decision to revise
its full-year view of its military division.
Weaker-than-anticipated revenue in that division contributed to a
20% decline in first-half pretax profit.
The pound (GBPUSD) traded at $1.6870 against the dollar, and was
pushed to an intraday high of $1.6890, according to FactSet data,
bolstered by a strong reading on the U.K. services sector. The
Markit/CIPS U.K. service-sector purchasing managers index jumped to
59.1 in July, from 57.7 in June. Analysts had expected a reading of
58.0.
The pound bought $1.6849 ahead of the report, and fetched
$1.6818 late Monday.
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