London stocks dip following Manchester attack

LONDON: London stocks dipped on Tuesday, with sentiment dented by a deadly terror attack in Manchester, while eurozone equities climbed on upbeat data.

The British capital's FTSE 100 index of leading blue-chip companies wobbled between gains and losses during the day, closing down 0.2 percent.

The pound, meanwhile, ended the day higher against the dollar.

"Trading was inevitably overshadowed by last night's terror attack in Manchester," noted Russ Mould, investment director at stockbroker AJ Bell.

At least 22 people were killed, including children, in the suicide bomb blast at the end of a pop concert by US star Ariana Grande in Britain's third city of Manchester.

Police say they believe Monday night's attack, the deadliest on British soil in 12 years and coming two weeks before next month's general election, was carried out by one man who had died at the scene.

The attack, the worst in Britain since bombers killed 52 people in 2005, reawakened concerns about terror and geopolitical worries.

In the eurozone, meanwhile, stocks rose on well-received economic numbers, with the Frankfurt DAX index climbing 0.3 percent and the Paris CAC rising 0.5 percent.

The eurozone economy grew at its fastest pace in six years in May as job creation in Europe picked up to its highest level in a decade, a closely watched survey showed.

Data monitoring company IHS Markit said its May Composite Purchasing Managers Index came in at 56.8 points, unchanged from April which was also the best for six years.

The PMI measures companies' willingness to invest in their business and so gives a good idea of how well the underlying economy is performing.

Any reading above the boom-bust 50 points line indicates the economy is expanding.

- Trump budget bump -

US stocks pushed higher as the administration of US President Donald Trump released a 2018 budget that seeks a staggering $1.7 trillion in cuts over 10 years to a category of spending that includes key social and "mandatory" programmes for lower-income Americans.

"It's perhaps not surprising to see the latest Trump slump become another buy-the-dip opportunity," said market analyst Jasper Lawler at London Capital Group.

"The Donald's first budget landing on lawmakers' desks on Tuesday is a reminder that while a special prosecutor is a hindrance to the pro-growth agenda, work is still being done."

Markets were hammered in the middle of last week on fears about Trump's economy-boosting agenda, with his presidency engulfed in a crisis over his firing of FBI chief James Comey and allegations he disclosed sensitive intelligence to Russian officials.

Asian markets mostly turned lower Tuesday as profit-taking overshadowed a healthy lead from Wall Street overnight.

Global stocks had rallied Monday, with energy firms benefiting from a surge in oil prices as OPEC and Russia look set to extend an output cut, while US dealers welcomed an optimistic survey on US manufacturing.

Crude prices rose further on Tuesday, with the meeting between OPEC and Russia set for Thursday.