European shares hit by Chinese data, miners slump

martes 1 de septiembre de 2015 10:47 GYT

* FTSEurofirst 300 drops 2.9 pct

* Basic resources stocks hardest hit

* DAX down despite stronger German data (Adds details, updates prices)

By Alistair Smout

LONDON, Sept 1 (Reuters) - European equities fell sharply on Tuesday, with miners slumping after weak manufacturing data from China again raised concerns over the economic health of the world's biggest metals consuming country.

The FTSEurofirst 300 index of top European shares was down 2.9 percent at 1,390.50 points by 1428 GMT, with basic resources stocks plummeting 5.6 percent, making them the top sectoral losers.

Activity in Chinese manufacturing contracted at its fastest pace for three years in August, reinforcing fears of a sharper slowdown in the world's second largest economy despite a flurry of government support measures. The manufacturing Purchasing Managers' Index fell to 49.7 in August, denoting contraction, after recording 50.0 in July.

"Sentiment is very fragile. We are seeing a confirmation of the slowdown in China," Lorne Baring, managing director of B Capital Wealth Management, said.

"European stocks could get even cheaper in this period of volatility but longer term, they look like good value and dividend yields are attractive. We are advising our clients to remain invested in high quality European stocks."   Continuación...