London’s FTSE 100 Index remained in the red despite robust figures from the UK services sector and as oil prices edged higher.
The closely-watched CIPS/Markit purchasing managers’ index (PMI) reported a marginal pick-up in activity last month for the UK services sector, with a reading of 55.6 compared to 55.5 in December – which was stronger than the long-run survey average. A reading above 50 signals growth.
The FTSE 100 Index was down 28 points to 5893.2, with the oil price up 50 cents to just over 33 dollars helping to cushion stock market falls.
Germany’s Dax was down 1%, while the France’s Cac 40 also fell 0.25%, as the German service sector expanded at a slower pace in January.
The pound was slightly up against the US dollar at 1.45, as it made gains on the back of the positive news from the UK services sector.
Sterling was slightly higher than the euro at 1.32.
The stock market debut of Clydesdale and Yorkshire Bank saw the lender rise 8.8p to 188p in conditional trading as it pressed ahead with its £1.6 billion flotation despite market volatility and after being hit by a last-minute delay.
The Glasgow-based lender – now known as CYBG – was forced to put the brakes on its initial public offering (IPO) for 24 hours on Tuesday following a “specific request” for more information from a credit ratings agency.
The high street bank is being spun out of the National Australia Bank (NAB), which saw its shares come under pressure on the Australian market after the initial float price for Clydesdale Bank came in at the low end of estimates, at 180p.
Hargreaves Lansdown saw its shares fall, down 3% or 48p to 1269p, despite shrugging off stock market turmoil to report a rise in first half pre-tax profits.
The financial services firm saw profits rise 6% to £108.1 million, but investors were put off after it confirmed its operating margins were coming under pressure.
There were also falls for other financial firms, with Standard Chartered down 16.5p to 416.4p, while high street lender Barclays fell 5.1p to 168.7p.
Royal Dutch Shell saw its shares climb 8.5p to 1444p, ahead of its update to the market on Thursday. The company looks set to come under further pressure from plunging oil prices, which sparked rival BP to cut thousands of jobs and post its largest annual loss for 20 years on Tuesday.
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