Investors turn their attention to PMI data

FTSE 100 turns positive on stimulus hopes after PMI data

Pound extends gains ahead of UK PMI data release

Chinese stocks slide overnight as central bank official casts doubt on stimulus

Britain could reset fiscal policy if necessary, Hammond says​

Eurozone business growing at weakest rate since start of 2015

UK economy contracts at steepest pace since early-2009 ​

UK economy contracts at steepest pace since 2009

The UK economy contracted at its steepest pace this month since 2009, data from Markit showed. An early edition of Markit's purchasing managers' indices showed the services sector suffered its biggest drop in its 20-year history in the wake of the Brexit vote. The PMI for the services sector fell to 47.4 in July from 52.3 in June, the lowest reading since March 2009, around the nadir of the global economic recession.

The manufacturing PMI fell to 49.1 from 52.1 in June, the lowest since February 2013. The composite index, which combines services and manufacturing, slumped to 47.7 from 52.4, the weakest reading since April 2009.

Pound slides after PMIs show 'dramatic deterioration' in UK economy

The pound fell by around 1.5pc from its intraday high against the dollar after UK PMIs revealed a 'dramatic deterioration' in the UK economy post-Brexit. The disappointing data stoked Brexit recession fears and raised hopes the Bank of England will have to act next month to stimulate growth. On the day, the pound fell 0.95pc to $1.3086 against the dollar.

FTSE 100 closes at highest level in almost a year

The FTSE 100 closed at its highest level in almost a year amid hopes of stimulus from the Bank of England at its next meeting in two weeks time after disappointing PMI data stoked Brexit recession fears. On Wednesday, the blue chip index closed at 6,728.99 - but today it surpassed that level, closing up 0.46pc at 6,730.48 - just six points shy of where it closed on August 10 2015.