LONDON MARKETS: Miners Lead U.K. Stocks Lower After China Data

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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