New concerns over China's economic slowdown send British shares into retreat, with miners falling the most. Kirsty Basset reports.
Chinese shares sank more than 5 per cent on Friday, in their biggest drop since the rout this summer. Weak industrial data out of China affected European shares and reignited concerns over China's economic slowdown. The mining sector took a knock - Rio Tinto, BHP Billiton and Glencore were all down between 1 and 2 percent. Anglo American meanwhile slid over 6 percent after it said it would close its Drayton coal mine in Australia. Jan Randolph is from IHS Global Insight. (SOUNDBITE) (English) JAN RANDOLPH, DIRECTOR OF SOVEREIGN RISK AT IHS GLOBAL INSIGHT SAYING: "China's continuing to rebalance. Consumption and services are holding up in China so it's not across the board slowdown. Investment and construction in China will continue to weaken, as has factory output. That's not good news for commodities." Chinese shares were also hit by news of a regulatory crackdown. The country's fourth biggest securities firm is being probed for a possible violation of regulations. Jitters surrounding China pushed euro zone bond yields lower, as investors continue to bet the ECB will announce a fresh round of stimulus. (SOUNDBITE) (English) JAN RANDOLPH, DIRECTOR OF SOVEREIGN RISK AT IHS GLOBAL INSIGHT SAYING: "I think Mario Draghi is concerned that in the previous quarter, growth did fall slightly to 0.3 from 0.4 in the previous quarter. And I think that will give him good grounds to ease further as well as very very low inflation rates even across zero in many parts of Europe." The ECB is due to meet on December 3.