By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Mining firms led U.K. stocks lower on
Monday, after a poor set of Chinese data fueled concerns that
growth in the world's second-largest economy is slowing down.
The FTSE 100 index dropped 0.1% to 6,403.50, adding to a 2.6%
loss from last week.
Miners posted some of the biggest losses in the index, hurt by
disappointing Chinese data out over the weekend. The data showed
inflation grew at a slower-than-expected pace in May, export growth
slumped unexpectedly and total social financing fell by about
one-third.
China is a major user of natural resources, leaving mining firms
vulnerable to growth indications from the country.
Shares of Anglo American PLC lost 2.9%, Rio Tinto PLC (RIO)
dropped 2.4% and BHP Billiton PLC (BHP) gave up 1.7%. Metals prices
were mostly lower.
Oil firms also inched lower, tracking a drop in oil prices.
Shares of Royal Dutch Shell PLC (RDSB) fell 0.3%, BP PLC (BP)
slipped 0.1% and BG Group PLC shaved off 0.2%.
Shares of Severn Trent PLC slumped 5.3% after a multinational
consortium of funds said it will make no further offer for the
utility firm after its latest bid was rejected. The consortium on
Friday raised its offer for Severn Trent, in its third attempt in
less than a month to take the company private.
On a more upbeat note in London, shares of AstraZeneca PLC rose
0.9% after the drug maker said it is buying Pearl Therapeutics for
up to $1.15 billion.
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