UK markets finished the first session of the new year in the red after a host of mixed data from across the globe, with the FTSE 100 pulling back after an impressive finish to 2013.
Economic figures released today showed that manufacturing activity growth in China, the UK and US eased during December, but picked up slightly in the Eurozone.
London's benchmark index, which rose 14.4% during 2013 to finish with its best annual gain since 2009, had risen by nearly 5% in the final two and a half weeks alone. Following a bank holiday yesterday, the Footsie finished Thursday's session down 31.18 points at 6,717.91.
"Equities have started 2014 on the wrong foot after an excellent performance in 2013. The City of London is not at full capacity just yet, and the holiday feeling is still lingering with trading volumes and volatility low. The City should be firing on all cylinders next week," said Market Analyst David Madden from IG.
Global manufacturing PMIs come in mixed
China's official manufacturing purchasing managers' index (PMI), released on Wednesday, fell from 51.4 to 51 in December, missing the 51.2 expected by analysts. Meanwhile, Thursday's HSBC/Markit survey showed that the manufacturing PMI declined from 50.8 to 50.5, broadly in line with forecasts.
While both figures came in above 50, indicating growth, they showed that the rate of manufacturing expansion had decelerated during the month.
Closer to home, the UK manufacturing PMI fell from a revised 58.1 to 57.3 in December, missing the prediction of a small up-tick to 58.2.
The final reading of the Eurozone manufacturing PMI was confirmed at 52.7, up from November's 51.6. While activity picked up in Spain, Italy and Germany during the month, conditions in France continued to deteriorate.
Meanwhile, the ISM manufacturing index in the US edged lower from 57.3 to 57 last month but still came in ahead of the 56.8 consensus forecast
