By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — Heavyweight miners and oil firms drove U.K. stocks into red territory on Thursday, after Chinese data pointed to a further slowdown in manufacturing activity in the country.
The FTSE 100 index UK:UKX -0.53% dropped 0.7% to 5,848.65.
Mining firms dropped alongside falling metals prices after HSBC’s “flash” Purchasing Managers’ Index showed China’s manufacturing activity shrank for an 11th month in September, although at a slower pace than in August. The reading came in at 47.8. See: China manufacturing index ticks higher, HSBC says
Vedanta Resources PLC UK:VED -3.43% slid 3.7%, Anglo American PLC UK:AAL -3.15% dropped 3.3% and Rio Tinto PLC UK:RIO -2.59% RIO -1.21% AU:RIO -1.79% gave up 2.9%.
BHP Billiton PLC UK:BLT -2.73% BHP +0.14% AU:BHP -1.52% tripped 2.7%. Read more about metals prices
Among oil firms, Royal Dutch Shell PLC UK:RDSB -0.93% RDS.B -0.36% lost 1.3%, BG Group PLC UK:BG -1.02% dropped 1.7% and BP PLC UK:BP -0.03% BP +0.51% nudged 0.5% lower.
Oil futures for October delivery CLV2 -0.70% were straddling $91 a barrel. Read more about oil prices
Banks also added pressure in London. Lloyds Banking Group PLC UK:LLOY -0.92% LYG +1.61% gave up 1.6%, Barclays PLC UK:BARC -0.91% BCS +1.10% fell 1.5% and HSBC Holdings PLC UK:HSBA -0.05% HBC +1.23% HK:5 -0.47% slipped 0.5%.
Bucking the negative trend, Imperial Tobacco Group PLC UK:IMT +1.58% ITYBY -1.61% added 1.5%. The company said revenue will climb 4% this year, as emerging markets growth and rising prices offset stagnant demand. See: Imperial Tobacco sees revenue up; demand stagnant and See: Big Tobacco braces for packaging ban
Sara Sjolin is a MarketWatch reporter, based in London.
