LONDON MARKETS: FTSE 100 On Track To Break 4-day Losing Streak As Oil Rallies
U.K. manufacturing PMI slides to three-month low
U.K. stocks rose for the first time in five sessions on Monday, lifted by shares of energy and mining giants as oil prices gained and data showed a rebound in China's manufacturing activity.
The FTSE 100 index added 0.5% to 7,349.99, after ending at the lowest level since early May (http://www.marketwatch.com/story/ftse-100-struggles-as-pound-clings-to-multiweek-high-2017-06-30) on Friday.
Among the biggest gainers, shares of BP PLC (BP.LN) (BP.LN) climbed 1.5% and Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) climbed 1.4%. The advances came as crude oil put on 0.2% (http://www.marketwatch.com/story/oil-gains-aiming-for-eight-winning-sessions-in-a-row-2017-07-03) to reach an almost three-week high at $46.15, heading for its eighth straight session of gains.
Miners were also among the FTSE's leaders after a private gauge of China's factory activity rebounded in June to show an expansion (http://www.marketwatch.com/story/caixin-china-pmi-shows-june-manufacturing-rebound-2017-07-02), indicating an improvement in the country's manufacturing sector. China is a major user of natural resources, so any growth indications from there tend to boost the mining sector.
Shares of Glencore PLC (GLEN.LN) added 2.9%, Anglo American (AAL.LN) put on 2.5%, and Rio Tinto PLC (RIO) (RIO) (RIO) climbed 1.8%.
On a more downbeat note, shares of Severn Trent PLC (SVT.LN) lost 1.1% after the water utility company said it's selling its North American business (http://www.marketwatch.com/story/severn-trent-sells-north-american-business-2017-07-03-24851521) for $62 million.
Economic news: The U.K. manufacturing purchasing managers' index for June slid to a three-month low of 54.3 in June (http://www.marketwatch.com/story/uk-manufacturing-pmi-slows-to-3-month-low-2017-07-03), down from 56.3 in May. Economists had expected a reading of 56.0, according to FactSet.
Markit said the data pointed to a "broad-based slowdown," with slower growth recorded across the consumer, intermediate and investment goods sectors.
The pound fell to $1.2969 after the data, after trading above the $1.30 mark earlier in the day.
(END) Dow Jones Newswires
July 03, 2017 05:43 ET (09:43 GMT)