By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks closed at the lowest level
since early February on Friday as wider worries about tensions in
Ukraine and an economic slowdown in China offset
better-than-expected U.K. construction data.
The FTSE 100 index fell 0.4% to close at 6,527.89, marking a
sixth-straight day of losses, which is the longest losing streak
since November 2011, according to FactSet data. For the week, the
FTSE closed 2.8% lower, the biggest weekly drop since June last
year.
The U.K. benchmark initially trimmed losses in early action
after data showed construction output in January rose 1.8%
month-on-month. HSBC analysts expected a rise of 1.2%. The Office
for National Statistics said the longer-term data also showed an
improved picture for the sector, with both new work and repair and
maintenance rising on the year.
The better-than-expected data weren't enough to lift the index
out of the red, as the broader investment sentiment in Europe was
dented by nervousness ahead of Sunday's referendum in Ukraine
that's likely to see citizens of the Crimea region vote to return
the Black Sea peninsula to Russia. The Ukrainian government, the
U.S. and the European Union contend the referendum is illegal, and
a vote in favor of rejoining Russia would likely be followed by a
round of U.S.- and European-led sanctions against Moscow.
Meanwhile, concerns about slower economic growth in China have
hit financial markets this week after a string of disappointing
data, including weak exports and weaker-than-expected retail
sales.
Mining firms, sensitive to Chinese growth and the wider risk
appetite among investors, posted some of the biggest losses in
London on Friday. Shares of Glencore Xstrata PLC (GLCNF) fell 2.5%,
Rio Tinto PLC (RIO) lost 0.7% and Antofagasta PLC slipped 0.7%.
Wm. Morrison Supermarkets PLC rose 1.4%, rebounding from its
decline from Thursday, when the shares slid 12% after the food
retailer issued its second profit warning in three months.
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