By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks were yanked lower Monday,
led by losses for the mining group after disappointing Chinese
data, and for oil-production companies as oil continued to sell
off.
The FTSE 100 dropped 1.1% to 6,648.39, with basic materials down
nearly 3% after two measures of manufacturing activity in China --
a key buyer of commodities -- indicated a loss in momentum in
November., underscoring slowing growth in China's economy. HSBC
said its China purchasing managers index fell to a six-month low of
50.0, from 50.4 in October. Meanwhile, China's officials PMI fell
to 50.3 from 50.8 in October, the lowest level since March.
Among losses in the mining sector, BHP Billiton PLC (BHP)
declined 3.6% and Randgold Resources Ltd. dropped 3.1%. Anglo
American PLC lost 3.3%, while Antofagasta PLC fell 3%.
Oil stocks were taking another beating as U.S. crude-oil futures
(CLF5) were pushed below $65 a barrel early Monday. Oil futures
have been diving since Thursday, when the Organization of the
Petroleum Exporting Countries failed to agree to an output cut.
Tullow Oil PLC dropped the most on the FTSE 100, losing 7.4%,
and energy engineering firm Weir Group PLC lost 5.2%.
Shares of BG Group PLC fell 3.4%. Also on Monday, the oil and
gas services provider has decided to cut the planned pay package
for incoming chief executive Helge Lund by roughly 53% to about 4.7
million pounds ($7.35 million). The move comes after shareholders
pushed back on the size of the compensation deal.
Off the main index, shares of Balfour Beatty PLC jumped 4.8%
following a Sunday Times report that John Laing Infrastructure Fund
is considering a GBP1 billion bid for the construction company's
investment arm.
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