By Polya Lesova, MarketWatch
LONDON (MarketWatch) -- Britain's benchmark index declined on
Friday, led lower by financial stocks, as U.S. labor market data
disappointed investors.
The FTSE 100 index fell 0.4% to end at 5,745.32 following two
sessions of strong gains.
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.Read more about November jobs report.
"The data indicate that the U.S. labor market is improving at a
snail's pace," said Christoph Balz, an analyst at Commerzbank.
Financial stocks were among the biggest decliners in the U.K.
benchmark index. Shares of hedge-fund manager Man Group PLC slipped
3.3%.
Among banks, Standard Chartered PLC fell 1.4% and Barclays PLC
dropped 2.5%.
Insurance firms also moved lower. Old Mutual PLC declined 2.5%
and Legal & General Group PLC fell 0.6%.
On the positive side, mining stocks posted gains. Vedanta
Resources PLC rose 0.9% and Fresnillo PLC rallied 4%.
Chilean copper miner Antofagasta PLC gained 1.6%.
In the aerospace sector, shares of engine maker Rolls-Royce
Group PLC edged up 0.2%, 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 2.1% 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.