Heavily-weighted mining stocks dragged the FTSE 100 Index down by more than 1% today amid fears over slowing growth in Asian powerhouse China.
London’s leading shares index closed 69.7 points lower at 5,891.4 after a senior executive at miner BHP Billiton said China’s demand for iron ore was “flattening out”.
The warning came after China’s recent announcement that it has lowered its annual economic growth target to 7.5% from 8%.
Mexican silver producer Fresnillo was down 5%, or 89p at £16.87, Vedanta Resources was off 57p at £13.61 and Antofagasta fell 45p to £12.01.
There were also losses for firms dependent on the strength of global demand – such as car and aerospace parts supplier GKN, which fell 5.9p to 209.5p.
Financial stocks were depressed with Lloyds Banking Group down 1.1p at 36.2p and Royal Bank of Scotland off 0.5p at 28.6p.
Vodafone was at the top of the risers board after India’s supreme court rejected the government’s appeal over a recent ruling that the mobile phone giant is not liable to pay taxes on an acquisition in 2007. Shares were up more than 2%, or 3.5p to 170.8p.
Arm Holdings, the Cambridge-based designer of chips for Apple’s iPad was 4.5p higher at 584.5p after Barclays Capital raised its price target on the back of a boom in sales of smartphones and tablet computers.
In the FTSE 250 Index, department store chain Debenhams rose 0.9p to 76.6p after a trading update showed a better-than-expected start to the year.
It was beaten to the top of the FTSE 250 risers board by Cable and Wireless Worldwide, which climbed 3.1p to 38p after reports said Tata Communications was planning to make a formal offer for the telecoms firm.
Elsewhere, serviced office provider Regus slipped 8.8p to £1.04, giving up recent gains, despite announcing that operating profits more than doubled to £50.6million last year.
David Barclay, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, highlighted Cairn Energy adding 2.98% to finish at 342.7p and Melrose Resources up 0.78% to 269.5p
Faroe Petroleum lost 3.5% to £1.52, Nautical Petroleum fell 4.13% to 325.625p and A.G. Barr slid 2.24% to £12.30.