(Alliance News) - Some positive PMIs and higher oil prices helped the FTSE 100 rebound in the afternoon to finish Wednesday's session modestly in the green.
The FTSE 100 index closed up 13.70 points, or 0.2%, at 6,712.89. The FTSE 250 ended up 70.78 points, or 0.3%, at 21,402.54, and the AIM All-Share closed down 1.16 points, or 0.1%, at 1,199.05.
The Cboe UK 100 ended up 0.2% at 669.64, the Cboe UK 250 closed up 0.5% at 19,089.23, and the Cboe Small Companies ended up 1.1% at 13,880.83.
London's blue-chip FTSE 100 traded in the red for the majority of Wednesday's session, but perked up as figures showed US business sector activity increased in March amid stronger client demand and the loosening of Covid-19 restrictions in some states.
The US services purchasing managers' index reading was 60.0 points in March, up slightly from 59.8 in February. The latest reading was in line with market forecasts, cited by FXStreet.
The US manufacturing PMI print edged up to 59.0 points in March from 58.6 in February, slightly below market forecasts of 59.3. However, the US composite PMI figure decreased to 59.1 points in March from 59.5 in February.
All three scores remained above the 50.0 mark which separates expansion from contraction.
Stocks in New York were mostly higher at the London equities close, with the DJIA up 1.0% and the S&P 500 index up 0.6% but the tech-heavy Nasdaq Composite down 0.4%.
While the UK also saw an uptick in service sector activity in March, this was offset by news of softening inflation.
The IHS Markit/CIPS UK flash services PMI reading posted 56.8 points in March, up from 49.5 in February. The latest figure was back above the 50.0 mark which separates expansion from contraction and also beat the market forecast, cited by FXStreet, of 51.0 points.
The flash UK manufacturing PMI increased to 57.9 points in March, up from 55.1 in February, beating forecasts of 55.0. The reading pointed to the strongest growth in factory activity since November of 2017.
However, the pound failed to get much of a boost from the PMI figures due to a stronger dollar and data earlier on Wednesday showing UK inflation weakened annually in February.
On an annual basis, UK consumer prices rose 0.4% in February, slowing from a rise of 0.7% in January. The reading missed market consensus for an 0.8% increase.
The pound fell to USD1.3728 at the London equities close Wednesday from USD1.3778 at the close on Tuesday.
In European equities on Wednesday, the CAC 40 in Paris ended flat while the DAX 30 in Frankfurt ended down 0.4%.
The flash Eurozone composite PMI rose to 52.5 points in March from February's final reading of 48.8 - which marks an eight-month high. Market consensus expected a reading of 49.1 points.
IHS Markit Chief Business Economist Chris Williamson said: "The eurozone economy beat expectations in March, showing a much better than anticipated expansion thanks mainly to a record surge in manufacturing output.
"The outlook has deteriorated, however, amid rising Covid-19 infection rates and new lockdown measures."
The PMI print came as Germany rowed back on plans for a strict Easter lockdown.
"This mistake is mine alone," German Chancellor Angela Merkel told reporters in Berlin, adding that she bore "the ultimate responsibility" for the decision, which had led to fierce criticism.
The euro stood at USD1.1834 at the European equities close Wednesday, down against USD1.1861 at the same time on Tuesday.
Against the yen, the dollar was trading at JPY108.77 compared to JPY108.67 late Tuesday.
Gold was quoted at USD1,736.33 an ounce at the London equities close Wednesday, up against USD1,727.16 at the close on Tuesday.
Oil prices advanced after an accident in the Suez Canal. Brent oil was quoted at USD63.98 a barrel at the London equities close Wednesday from USD62.09 late Tuesday.
"Energy traders were trying to get a quick assessment on how long will a massive container ship block one of the world’s busiest waterways. Oil rallied on fears that the stranded ship could be stuck for days, then pared gains after it seemed canal traffic would resume imminently, eventually settling near session highs after news that traffic should resume later today or by Thursday," said Edward Moya at Oanda.
Shares in BP closed up 2.0%, while Royal Dutch Shell 'A' shares rose 1.9% and 'B' shares 1.4%.
Finishing at the top of the FTSE 100 was British Airways parent International Consolidated Airlines, rising 4.0% after falling 5.2% on Monday and 4.4% on Tuesday as countries across Europe imposed stricter lockdown measures.
Halma rose 2.3% after lifting expectations for its 2021 financial year due to making "good progress" in the second half.
The FTSE 100 hazard detection and life protection technologies manufacturer said it now expects adjusted pretax profit for financial 2021 to be similar to that in financial 2020, compared to prior guidance of around 5% below the prior year. It posted adjusted pretax profit of GBP267.0 million in financial 2020.
The company said order intake is currently ahead of revenue and ahead of the same period last year, reflecting the agility of its business model and the benefits of focus on niche markets with long-term growth drivers. Halma reported total group revenue of GBP1.34 billion in financial 2020.
In the FTSE 250, Gamesys rallied 18% after agreeing to a potential takeover from New York-listed Bally's Corp, which would value the London-listed gambling software firm at GBP2.02 billion.
The 1,850 pence per share offer is a 13% premium to the company's closing price on Tuesday, gaming firm Bally's noted. Rhode Island-based Bally's owns racetracks and casinos in the US.
"The Gamesys board and Bally's board believe that the possible combination has a compelling strategic and financial rationale, would create long-term value for both Gamesys and Bally's and would be consistent with Bally's and Gamesys' respective long-term growth strategies," a statement on Wednesday said.
The statement noted that the announcement does not constitute a firm offer for Gamesys. Bally's has until the close of play on April 21 to decide whether it plans to make a firm offer for Gamesys.
Softcat jumped 15% as the IT infrastructure firm posted improved first half profit, upped its payout, and guided for an annual earnings beat.
The Marlow, Buckinghamshire-based firm posted a 10% revenue rise to GBP577.0 in the six months to January 31, from GBP524.1 million a year earlier. Pretax profit surged 41% year-on-year to GBP57.0 million from GBP40.5 million.
Softcat's interim dividend amounted to 6.4p, up 19% from last year's 5.4p, and it expects annual results to be "significantly ahead of its previous expectations".
The UK corporate calendar for Thursday has full-year results from cinema chain operator Cineworld and trading statements from contract caterer Compass and water firm United Utilities.
The economic calendar on Thursday has German Gfk consumer confidence at 0700 GMT and a monetary policy decision from the Swiss central bank at 0830 GMT. US GDP is due at 1230 GMT with initial jobless claims due at the same time.
By Lucy Heming; lucyheming@alliancenews.com
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