Resource firms lead European shares lower on China outlook

martes 25 de febrero de 2014 11:48 GYT
 

* FTSEurofirst 300 down 0.3 pct

* STOXX Europe 600 Basic Resources index down 2.3 pct

* UK's FTSE 100 among the worst hit national indexes

* Healthcare and telecom outlooks knock defensive sectors

By Simon Jessop and Alistair Smout

LONDON, Feb 25 (Reuters) - A seven-session winning streak in the leading pan-European share index was likely to be snapped on Tuesday after the mining sector absorbed a fresh knock from China and weak corporate outlooks dented the earnings picture.

After weathering a torrid 2013 on concerns about slowing growth in the world's top metals consumer, the STOXX Europe 600 Basic Resources index started the year brightly, adding 8 percent in a run to the February high, only to cede half those gains over the last four days.

That trend got a sharp shove and left the sector on course for its worst day's trade in three weeks on Tuesday, extending the previous session's fall, after yuan weakness compounded recent efforts by Beijing to curb bank lending.

"The mining sector slide is all down to China's policy of actually devaluing the Reminbi and it has much further to run," said Justin Haque, director at Hobart Capital Markets.   Continuación...