FTSE 100 climbs on upbeat services sector data

LONDON: The UK’s FTSE 100 rose on Wednesday after data showed that the dominant service sector in March reported the strongest new business expansion in a year, while shares of drugmaker AstraZeneca climbed to the top of the benchmark index.

The blue-chip FTSE 100 rose 0.4%, outperforming the broader European markets, as defensive sectors including pharmaceuticals and consumer staples gained.

“The market’s just being attracted to FTSE 100’s defensive nature and strong cash flow generation in a period where economic indicators are looking a bit weak and central banks still have pressures on them to hike because of an inflation,” said Patrick Armstrong, chief investment officer at Plurimi Wealth.

Adding to the signs of economic recovery, the final reading of the S&P Global/CIPS UK Services Purchasing Managers’ Index (PMI) of 52.9 was below February’s 53.5 but above the 50 mark, denoting growth for a second month in a row.