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FTSE and pound hit by weak manufacturing survey | |
(about 4 hours later) | |
(Noon): UK shares and the pound fell after a closely-watched survey suggested the UK's manufacturing sector was not growing as quickly as hoped. | |
The latest purchasing managers' index (PMI) for manufacturing rose to 52 in May from 51.8 in April. | |
Although a figure above 50 indicates expansion, the reading was weaker than analysts' expectations. | |
The FTSE 100 index gave up early gains to stand 8.20 points lower at 6,976.23, while the pound also fell. | |
Against the dollar it was 0.55% lower at $1.5206, and while sterling was up 0.08% against the euro at €1.3919 this was below the day's highs. | |
On the stock market, shares in drug maker AstraZeneca rose 0.6% after it announced positive news on a lung cancer treatment. | |
Shares in Lloyds Banking Group rose 1% after the government said it had cut its stake in the bank to 19%. | Shares in Lloyds Banking Group rose 1% after the government said it had cut its stake in the bank to 19%. |
The government also said it would extend its plan to sell off shares in the bank to the end of the year, and that it would launch a sale to retail investors within the next 12 months. | The government also said it would extend its plan to sell off shares in the bank to the end of the year, and that it would launch a sale to retail investors within the next 12 months. |
In the FTSE 250, shares in semiconductor firm Imagination Technologies rose 6.2% on rumours that it could be a bid target. |