Sector movers: Miners sideswiped as Chinese manufacturing stagnates

UK-listed mining stocks were bearing the brunt of the selling pressure on Thursday as disappointing economic data from across the globe - China in particular - hit market sentiment.

Resource shares, often sensitive to news-flow from top metals user China, took a hit when it emerged that the nation's manufacturing sector stagnated this month.

The preliminary reading of the HSBC China manufacturing purchasing managers' index (PMI) declined from 50.4 to the break-even point of 50 in November, its lowest in six months and below the 50.2 consensus forecast.

Analysts at Danske Bank said they expect the PMI to stay within a narrow range of around 50 as it has done in recent years.

"This suggests an economy moving sideways with continued downward pressure from a structural slowdown in growth," they said.

Markit's PMIs on both the Eurozone and US manufacturing sectors also came in lower than analysts' estimates, raising concerns about a global slowdown in the fourth quarter.

FTSE 100 peers Rio Tinto, Anglo American and BHP Billiton were among the worst performers in afternoon trade in London, following closely behind by Glencore and Antofagasta.

BHP Billiton was also making headlines after its boss Andrew Mackenzie said at a shareholder meeting that "the time for massive expansions of iron ore are over". Iron ore is the company's largest business and prices are currently trading at their lowest in over five years.

The benchmark spot price dropped to below $70 a tonne on Wednesday, a level not seen since June 2009, meaning that many small producers are now selling the commodity at a loss.

FTSE 250 iron-ore producer Ferrexpo was suffering steep losses, down 6%. Other miners such as Kaz Minerals, Centamin, Lonmin and Vedanta Resources also fell.

Top performing sectors so far today
Chemicals 10,742.72 +2.42%
Oil Equipment, Services & Distribution 22,041.62 +0.75%
Health Care Equipment & Services 6,171.77 +0.53%
Electronic & Electrical Equipment 3,711.18 +0.34%
Technology Hardware & Equipment 1,081.92 +0.27%

Bottom performing sectors so far today
Industrial Metals & Mining 1,389.99 -3.99%
Mining 14,780.54 -3.22%
Forestry & Paper 11,331.47 -2.23%
Fixed Line Telecommunications 4,262.46 -2.17%
Gas, Water & Multiutilities 6,247.33 -1.96%