By Polya Lesova, MarketWatch
LONDON (MarketWatch) -- Britain's benchmark index edged lower
Friday following the release of disappointing labor market data
from the U.S.
The FTSE 100 index fell 0.1% to 5,762.50 in afternoon trading
following two sessions of strong gains.
"Equities were shaken by the unemployment report, and have
scrambled to regain their footing to climb back a bit towards
morning levels," said Christopher Purdy from Spreadex Ltd. in a
note.
The "recovery remains fragile, and markets are undecidedly
teetering ahead of the weekend."
The Labor Department reported that U.S. nonfarm payrolls
increased by 39,000, compared with expectations for a 155,000
gain.
The unemployment rate unexpectedly rose to 9.8% in November from
9.6% in October.
Financial stocks were among the biggest decliners in the
benchmark index. Shares of hedge-fund manager Man Group PLC slipped
2.8%.
Among banks, Standard Chartered PLC fell 1.4% and Barclays PLC
dropped 2.6%.
Insurance firms also moved lower. Old Mutual PLC declined 2.7%
and Legal & General Group PLC fell 0.4%.
In the mining sector, shares of Vedanta Resources PLC gained
0.9% and those of Fresnillo PLC rallied 4.3%.
Chilean copper miner Antofagasta PLC rose 1.8%.
In the aerospace sector, shares of engine maker Rolls-Royce
Group PLC edged up 0.7%, erasing earlier losses.
The Australian Transport Safety Bureau released its preliminary
investigation report on the engine failure on board a Qantas
Airways A380 aircraft over Indonesia on Nov. 4. The plane's engine
is made by Rolls-Royce.
The bureau identified an overspeed-related failure in the
intermediate pressure turbine disc in the aircraft's No. 2 engine.
The problem relates to "a possible manufacturing issue" with some
engines, the bureau said.
Also in the sector, shares of Chemring Group PLC rose 2% after
J.P. Morgan Cazenove started coverage of the stock with an
overweight recommendation.
"We believe it should recover its historical premium to the
aerospace & defence sector due to its industry leading growth
rates and operating margins, which we believe it can sustain," the
broker said in a note.