* FTSE 100 up 0.1 percent
* Miners and banks higher after Chinese PMIs
* easyJet a top FTSE riser after MS upgrade, delay over
* Vodafone falls on details of joint venture sale
By Alistair Smout
LONDON, Sept 3 British shares edged higher on
Tuesday, boosted by Chinese data pointing to better global
growth, but gains were limited by falls in Vodafone as details
of the sale of Verizon Wireless disappointed some analysts.
Growth sensitive sectors including miners and Asia-exposed
banks were among the top gainers, after China's services sector
grew steadily in August as domestic demand picked up, official
data showed on Tuesday.
The FTSE 100 rose 0.1 percent, up 5.53 points at 6,511.72 by
0800 GMT, taking gains for the week to 1.5 percent after a 1.2
percent drop last week on concerns about instability in the
Traders were still looking to the situation in Syria, where
U.S. military action is on hold, and warned that gains may be
muted until the picture became clearer.
"We've got a brightening growth picture, and clearly people
were too short into the weekened, so we're getting squeezed
higher. But while the Syria concerns are on the side, there
can't be a vote in Congress on it until next week, so it could
be a bit choppy until then," a London-based sales trader said.
Low-cost airline easyJet, which had suffered with
the higher oil price sparked by concerns over stability in the
Middle East, was the top gainer, up 1.8 percent, benefiting too
from a target price upgrade from Morgan Stanley.
Having fallen 16.2 percent from early to late August, the
stock is now up 8.2 percent in the last four days.
On the downside, Vodafone fell 1.7 percent, taking 6.8
points off the FTSE 100 index, after the British telecom firm
said the deal would allow it to return 71 percent of the net
proceeds - or $84 billion including all of the stock - to
The division of the return to shareholders between shares
and cash is capped, meaning that "shareholders are only
compensated for a small amount of potential Verizon weakness yet
don't benefit from any strength until VZ has rallied 7.6
percent," Simon Maughan, strategist at Olivetree, said in a
"This means VOD shareholders lose out on a meaningful amount
of VZ potential upside but wear most of the potential downside,
we model this as costing VOD shareholders some 3.3p," he
Vodafone traded 3.5 pence lower, although the stock has
still gained 10.2 percent since details of the deal started
emerging last week.
(Reporting by Alistair Smout; editing by Stephen Nisbet)
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