FTSE drops 1% as eurozone PMI data disappoints

London's leading share index had lost 1% by mid-afternoon, weighed down by weaker than expected manufacturing and services data in the eurozone.

Private business activity and manufacturing output across the continent both hit four-month lows in March. The Purchasing Managers' Index, seen by many as leading indicator of the health of the eurozone, fell to 46.5 points in March, from 47.9 in February. This was below the forecasts of many analysts, who had expected a small rise to 48.2, according to Reuters. The disappointing data sent the FTSE 100 1% or 65 points lower to 6,368, by 2.50pm. The ongoing problems in Cyprus also hit sentiment, putting shares under pressure. The decline was led by the miners, with ENRC the w...