Footsie falls below 6,700 over PMI data

Market report Perry Gourley

London’s top flight index tumbled below the 6,700 mark as investors baulked at a bleak economic update from the UK manufacturing industry. The FTSE 100 index slipped 30.5 points to 6,693.95 after the manufacturing sector endured its sharpest fall for more than three years. The closely watched Markit/cips UK Manufacturing purchasing managers’ index (PMI) fell to levels last seen in February 2013.

The result will heap further pressure on the Bank of England to hand the UK economy a fresh dose of monetary stimulus when it votes on interest rates on Thursday.

Tony Cross of Trustnet Direct said: “Despite a strong start, the FTSE 100 plunged on the back of some far worse than expected PMI manufacturing data – a number that critically gave yet more insight into economic fallout of the immediate post-brexit period.”

Banks and housebuilding stocks suffered with Taylor Wimpey the biggest faller on the London market, off more than 4 per cent or 7p to 147.7p, while Barclays dropped 2 per cent or 3.2p to 151.4p.

Supermarket chain Morrisons was down 4.3p to 181.5p as the market reacted coldly to its latest round of price cuts. The grocer has pledged to trim 18 per cent off the price of more than 1,000 products.

NEW YORK: The Dow Jones Industrial Average was down 27.73 points, or 0.15 per cent, to end at 18,404.51 while the Standard & Poor’s 500 index fell 2.76 points, or 0.13 per cent to finish on 2,166.79. The Nasdaq Composite index rose 22.06 points, or 0.43 per cent, to close at 5,184.20. The energy firm said that it had signed agreements for commercial gas production to start from its field in Slovenia as early as January. The geotechnical services firm warned that results for 2016 will be at the bottom end of expectations after a weak first half in some markets.