European shares end week in the red as Wall Street pushes higher

The FTSE 100 dipped below 6,000 points yesterday for the first

time since the end of July, as a rally in healthcare and tech stocks faded, sending the index into the red.

The blue-chip index fell as low as 5,948.8 before closing at 6,001.9, down 11.5 points, after an upbeat purchasing managers’ index (PMI) report, which said the UK’S economic recovery was “gaining speed”, failed to impress investors.

Other European bourses also tumbled after flash euro zone manufacturing and services surveys pointed to a stuttering economic recovery in major economies, including Germany and France.

On a quiet day for corporate updates, truck company Eddie Stobart Logistics gained after Greenwhitestar Acquisitions, an associate company, signed a deal to shuttle groceries from Morrisons’ distribution centres to its supermarkets. Shares in the firm climbed a ha’penny to 8.1p.

Greenwhitestar Acquisitions is 49pc-owned by Eddie Stobart.

William Stobart, Greenwhitestar’s executive chairman, said: “This further enhances our existing relationship with Morrisons and is testament to our current performance. It is excellent news for Eddie Stobart and strengthens our position in the marketplace as the leading transport provider for the retail and consumer sectors.”

Meanwhile the pound slid after Michel Barnier, EU chief negotiator, warned that a post-brexit trade deal between the UK and the bloc was slipping away.

He said: “Those who were hoping for negotiations to move swiftly forward this week will have been disappointed.

“At this stage an agreement between the UK and the EU seems unlikely. Too often this week it felt as if we were going backwards more than forwards.”

But his UK counterpart David Frost sounded a more positive note that a deal was “still possible”.

In a statement, he said: “There are … significant areas which remain to be resolved and even where there is a broad understanding between negotiators, there is a lot of detail to work through. Time is short for both sides.”

Sterling fell 1pc against the dollar to $1.31, and by the same amount against the euro to €1.128.

The string of gloomy eurozone business surveys also sent the single currency down against the dollar, falling as much as 0.6pc to $1.1784, a one-week low.

Across the pond, US stocks extended their gains after surveys on house sales and business activity showed that the country’s economic recovery was gaining momentum.

Sales of previously owned homes surged by the most on record in July.

The benchmark S&P 500 headed toward its fourth straight weekly advance – the longest winning streak this year.

The index was boosted by industrial, financial and technology companies, while commodity shares retreated. Agricultural machinery maker Deere jumped nearly 5pc after raising its sales outlook.