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LONDON (Alliance News) - UK stocks ended a strong October with a whimper Friday, closing lower driven by individual stock movements, while the dollar declined against other currencies after a number of weak US economic data releases.

The FTSE 100 closed down 0.5% at 6,361.09, but closed 4.9% higher over the course of the month. It was also the index's first positive month since July.

The FTSE 250 was relatively resilient on Friday compared the blue-chip index, closing flat at 17,117.21. The AIM All-Share closed down 0.4% at 737.91.

European stock indices outperformed London during October. The CAC 40 in Paris closed the day up 0.2%, and the month up 9.9%. The DAX 30 in Frankfurt closed the day up 0.5%, and the month up 12.3%.

Wall Street also had a stellar month, but was trading flat-to-lower at the London close. The Dow Jones Industrial Average and the Nasdaq were both flat, and the S&P 500 was 0.1%. However, during October the Dow was up 9.2%, the S&P up 8.5% and the Nasdaq up 9.6%.

However, the dollar fell against other major currencies in the afternoon following weak economic data from the US. Personal income and spending in the US both saw modest increases in the month of September, a report from the Commerce Department revealed, but the rises came in below economist estimates.

The report said personal income inched up by 0.1% in September after climbing by an upwardly revised 0.4% in August. Economists had expected income to rise by 0.2% compared to the 0.3% increase originally reported for the previous month. Disposable personal income also edged up by 0.1% in September following a 0.4% increase in August.

The Commerce Department said personal spending also crept up by 0.1% in September after rising by 0.4% in the previous month. Spending had also been expected to climb by 0.2%. Real spending, which is adjusted to remove price changes, rose by 0.2% in September after climbing by 0.4% in August.

In addition, consumer sentiment in the US improved by less than previously estimated in October, according to a report released by the University of Michigan.

The report said the final reading on the consumer sentiment index for October came in at 90.0 compared to the preliminary reading of 92.1. The index remains above the final September reading of 87.2, although economists had expected the index to be upwardly revised to 92.5.

The one spot of optimism on Friday came from the Chicago Business Barometer index, which showed an unexpected expansion in Chicago-area business activity in October.

MNI Indicators said its Chicago Business Barometer jumped to 56.2 in October from 48.7 in September, with a reading above 50 indicating growth. Economists had expected the index to show a much more modest increase to a reading of 49.2, which would have still indicated a contraction. With the much bigger than expected increase the Chicago Business Barometer reached its highest levels since January.

The sharp increase in the Chicago Business Barometer reading was led by a jump in the production index, which surged up nearly 20 points to 63.4. The new orders index also rose sharply, leaving both at their highest levels since the start of the year. MNI Indicators said firms also reported significant growth in inventories, which accounted for part of the leap in output in October.

However, the overall negative sentiment from the day's releases saw the dollar depreciate against other currencies. At the London close, the pound traded the greenback at USD1.5444 and the euro was quoted at USD1.1028.

In Europe, eurozone consumer prices came in flat in October, while the single currency zone's jobless rate fell unexpectedly to its lowest level in about two-and-a-half years in September, preliminary figures from Eurostat revealed.

The consumer price index remained unchanged from the same month a year ago, after declining 0.1% in September. The outcome was in line with economists' expectations. Core inflation, which excludes energy, food, alcohol and tobacco, rose to 1.0% from 0.9%. Economists had expected the figure to match the September print.

Separately, Eurostat said the unemployment rate for the euro area fell to 10.8% in September from a revised 10.9% in August. Economists had expected the rate to remain unchanged at August's original figure of 11%. It was the lowest rate recorded in the euro area since January 2012, the agency said.

On the corporate front, International Consolidated Airlines Group closed as the worst FTSE 100 performer, down 4.3%. The British Airways and Iberia owner said its operating profit in the third quarter to the end of September was EUR1.25 billion, up from EUR900.0 million a year earlier and still up to EUR1.21 billion when excluding the contribution from Aer Lingus Group, the Irish flag carrier IAG acquired this year.

The strong results in the quarter meant IAG upgraded its operating profit guidance for the full year to EUR2.25 billion to EUR2.30 billion, a firmer target than the previous guidance for profit to be in excess of EUR2.20 billion. The new guidance also excludes any contribution from Aer Lingus.

Cantor Fitzgerald said the company's upgrade to guidance was "only to in-line with full year consensus", which was already at EUR2.29 billion. Liberum analyst Gerald Khoo shared the sentiment, saying the minor improvement to guidance may disappoint the market, given upward pressure on estimates at other European airlines and considering the new guidance is consistent with current consensus.

Gold miners Randgold Resources, down 1.5%, and Fresnillo, down 0.6%, ended lower as the price of gold continued its recent slide. The metal was quoted at USD1,141.64 an ounce at the London close.

Elsewhere in commodities Brent Oil was trading at USD49.18 a barrel at the close of European equity markets.

In the FTSE 250, Vectura Group closed as the best performer, up 6.7%. The drug development company said it had secured two milestone payments following the approval of an inhaler in the US and after hitting a development milestone in Europe.

Vectura said the US Food and Drug Administration has approved the dual combination Utibron Neohaler and Seebri Neohaler products for the long-term treatment of patients with chronic obstructive pulmonary disease. The approval has triggered a USD22.5 million milestone payment to Vectura from Swiss pharmaceuticals giant Novartis, Vectura's partner on the product.

The company also has been paid a USD750,000 cash milestone after a further development milestone was hit for its VR632 therapy in the European Union. VR632 is an asthma and COPD inhaled treatment therapy which users Vectura's dry powder inhaler and formulation technology. That milestone payment was made by Sandoz, a unit of Novartis.

Pets At Home Group was the worst midcap performer, down 7.4%. The pet products and services retailer said it is trading broadly in line with market expectations, but Chief Executive Nick Wood said sales in some parts of the business had been weaker-than-expected in the half.

Like-for-like sales in the 28 weeks to October 8 grew 1.8%, the company said, a slight improvement on the 1.7% like-for-like growth it posted for the first quarter but still well short of the 4.2% rise seen in the first half of its 2015 financial year. Merchandise like-for-like revenue increased 1.0%, while services like-for-like revenue was up 11%.

In the economic calendar on Sunday, there are Chinese manufacturing and non-manufacturing PMI at 0200 GMT. On Monday, Caixin manufacturing PMI for China is at 0145 GMT, before the Nomura/JMMA Manufacturing PMI for Japan at 0235 GMT. Later in the day there are a raft of Markit manufacturing PMI readings from France at 0850 GMT, Germany at 0855 GMT, the eurozone at 0900 GMT, the UK at 0930 GMT, and the US at 1445 GMT. There is also the Institute for Supply Management manufacturing PMI at 1500 GMT, alongside US construction spend.

In the UK corporate calendar, HSBC Holdings releases third quarter results at 0400 GMT. At 0700 GMT, there is a trading update from construction company Morgan Sindall Group, and interim results from semiconductor and imaging technology company e2v Technologies.

By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1

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