Disappointing services sector data in China and Europe left London shares lower on Thursday.
The FTSE 100 Index fell about 16 points to 6131 after unofficial Caixin services PMI data out overnight echoed official figures earlier in the week, with the headline activity index down 1.2pts to 51.7.
Analysts at Daiwa Capital Markets said in a note: "Given the deterioration in the equivalent manufacturing survey earlier in the week, this left the composite output PMI back in contractionary territory for the fifth month out of the past seven."
In the eurozone, services data fared a little better than the manufacturing equivalent, but was still down for the second month in a row to 53.0, the lowest since the start of 2015.
And in the UK, there was more bad news as purchasing managers index data showed growth in the services sector slowing to its weakest in nearly three years in February.
In the markets, oil continued its descent after US inventory data on Wednesday showed rising stockpiles, adding to the world's supply glut. The price of a barrel of Brent crude dropped 0.7% to US$36.7.
Genel Energy (LON:GENL) recovered losses earlier this week after a 22% rise in production against a year earlier partly offset a 34% drop in revenues for 2015 as a result of falling oil prices. Shares in the Kurdistan-focused producer jumped 5.5p to 83.25p.
Shares in Domino's Pizza (LON:DOM) were 3p cooler at 1046p after the takeaway chain reported higher profits and a good start to 2016 but said it would face an uphill task to match last year's strong performance.
Strategic Minerals (LON:SML) saw good demand for magnetite from its Cobre site in New Mexico but said commodity price falls had seriously affected its ability to carry through its strategy. Shares fell 13% to 0.1p.
Challenger Acquisitions (LON:CHAL), which invests in big observation wheel projects such as the London Eye, ascended 0.25p to 23p after raising £500,000 through the issue of convertible loan notes.
MARKET PREVIEW
London’s blue-chip stocks are set to start Thursday mostly flat, after the rally in global equities cooled somewhat.
Better oil prices brought markets higher earlier in the week, but, now Friday’s US employment stats for February are coming into focus.
Wednesday saw Wall Street edge higher, with the Dow Jones ending 34 points or 0.2% into positive territory at 16,899 while the S&P 500 and Nasdaq rose 0.4% and 0.3% respectively.
In Asia, stocks also mostly moved higher.
Japan’s Nikkei gained over 200 points, about 1.3%, to 16,960.
The Shanghai Composite notched up a 0.15% rise, while Hong Kong’s Hang Seng was the odd one out with a 144 point or 0.7% decline.
Australia’s ASX 200 moved some 60 points, 1.2%, higher.
Crude prices remain supportive. Brent crude was slightly higher early this morning, at $36.85 per barrel, and US crude futures climbed 0.7% to change hands at $34.65.
In London, CFD and speadbetting firm IG Markets is calling the FTSE 100 down by about 5 points at 6,140 to 6,145.