European basic resource shares slip on China outlook

martes 25 de febrero de 2014 13:32 GYT

* STOXX Europe 600 Basic Resources index down 1.4 pct

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

* FTSEurofirst 300 recovers in late trading, ends flat

By Simon Jessop and Alistair Smout

LONDON, Feb 25 (Reuters) - European mining shares ended lower in choppy trading on Tuesday as the sector absorbed a fresh knock from China, with weak corporate outlooks hurting companies such as Fresenius and Seadrill.

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 about half those gains over the last four days.

That trend accelerated, resulting in the sector posting its worst day's trade in three weeks, 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.

The sector ended down 1.4 percent, led by UK-listed Rio Tinto, Anglo American and BHP Billiton, all down between 1.6 and 2.8 percent to ensure the UK's FTSE 100 was Europe's index laggard.   Continuación...