By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks were on track to break a
five-day losing streak on Wednesday, after data showed the services
sector remained on a strong growth path at the start of 2014.
The FTSE 100 index gained 0.4% to 6,477.64, rebounding after
closing at the lowest level since Dec. 13 on Tuesday.
Data on the services industry supported the benchmark, with the
purchasing managers' index for the sector indicating solid
expansion. The PMI came in at 58.3 for January, down from 58.8 in
December, but with business confidence at the highest level since
March 2010.
"Although the pace of expansion slowed, we must remember that
growth was exceptionally strong in previous months, and also that
parts of the country saw record rainfall in January," said Chris
Williamson, chief economist at Markit, in a note.
"With business optimism about the future reaching the highest
for almost four years, we should see growth revive again in
February, hopefully as the weather improves and households and
businesses dry out from January's rainfall," he added.
Among notable movers in London, shares of RSA Insurance Group
PLC jumped 5.8% after the insurance company in afternoon trade on
Tuesday said it hired Stephen Hester as new chief executive
starting immediately. Hester left Royal Bank of Scotland Group PLC
(RBS) in September after being CEO there for five years, overseeing
the recovery effort at the 81% state-owned bank.
ARM Holdings PLC (ARMHY) put on 4.5%, taking back parts of a
5.9% loss posted on Tuesday, when the microchip designer said it
swung to a loss in the fourth quarter.
As a sector, banks pushed higher. Shares of Lloyds Banking Group
PLC (LYG) rose 1.1%, Standard Chartered PLC gained 1.2%, and
heavyweight HSBC Holdings PLC (HSBC) inched 0.3% higher.
On a more downbeat note, shares of Hargreaves Lansdown PLC slid
6.2% after the investment manager reported a jump in profit, but
failed to meet the ambitious expectations of the market.
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