The FTSE 100 fell early on Wednesday as lacklustre Chinese economic data and a political crisis in Portugal cast a shadow.
The FTSE 100 was down 101.4 points, or 1.6 percent, at 6,202.51 points at 0853 BST.
Construction materials and mining stocks were among the biggest losers as data highlighted a slowdown in construction
activity in China, the world's largest consumer of metals and a driver of global economic growth.
"There's more we need to see out of China before we feel we can buy any commodity stocks," said Dan Reed, head of contract-for-difference trading at Beaufort Securities. "I've been shorting the FTSE since about the 6,300 level."
Short sellers borrow a security and sell it, betting they will be able to buy it back at a lower price before returning it to the lender, pocketing the difference.
Reed said he was awaiting decisions from central banks in Britain and the euro zone, as well as jobs data from the United States later this week before taking any long-term positions on the FTSE.
Financial stocks knocked 30 points off the FTSE as a political crisis in Portugal threatened to derail Lisbon's exit from an international bailout programme and to reignite a crisis in the euro zone sovereign debt market.
Appetite for shares was further dented by concerns that turmoil in Egypt could destabilise the Middle East. That hit energy companies such as BG Group, which has operations in the region and fell 2 percent.
Africa-focused oil explorer and producer Tullow Oil outperformed its peers, rising 2.8 percent to the top of the FTSE after announcing a "very successful" exploration programme in Kenya.
Source: http://uk.reuters.com/article/2013/07/03/uk-markets-britain-stocks-idUKBRE8710BE20130703
The FTSE 100 was down 101.4 points, or 1.6 percent, at 6,202.51 points at 0853 BST.
Construction materials and mining stocks were among the biggest losers as data highlighted a slowdown in construction
activity in China, the world's largest consumer of metals and a driver of global economic growth."There's more we need to see out of China before we feel we can buy any commodity stocks," said Dan Reed, head of contract-for-difference trading at Beaufort Securities. "I've been shorting the FTSE since about the 6,300 level."
Short sellers borrow a security and sell it, betting they will be able to buy it back at a lower price before returning it to the lender, pocketing the difference.
Reed said he was awaiting decisions from central banks in Britain and the euro zone, as well as jobs data from the United States later this week before taking any long-term positions on the FTSE.
Financial stocks knocked 30 points off the FTSE as a political crisis in Portugal threatened to derail Lisbon's exit from an international bailout programme and to reignite a crisis in the euro zone sovereign debt market.
Appetite for shares was further dented by concerns that turmoil in Egypt could destabilise the Middle East. That hit energy companies such as BG Group, which has operations in the region and fell 2 percent.
Africa-focused oil explorer and producer Tullow Oil outperformed its peers, rising 2.8 percent to the top of the FTSE after announcing a "very successful" exploration programme in Kenya.
Source: http://uk.reuters.com/article/2013/07/03/uk-markets-britain-stocks-idUKBRE8710BE20130703
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