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Miners lead European shares lower on China demand concern
June 24, 2013 / 8:32 AM / 4 years ago

Miners lead European shares lower on China demand concern

LONDON, June 24 (Reuters) - European shares extended losses and hit a session low on Monday, led by mining stocks on fresh concerns about falling demand from China.

At 0817 GMT, the FTSEurofirst 300 index was down 0.8 percent at 1,124.10 points, while the STOXX Europe 600 Basic Resources sector led sectoral fallers, down 1.3 percent.

The weakness in mining stocks came as copper fell to a 21-month low, with traders citing fears that demand would remain weak, pressured by growth concerns and a tightening in credit supply in China.

That resulted in Chinese stocks posting their worst 1-day fall for four years. Goldman Sachs, meanwhile, cut its growth forecasts for the world’s second-biggest economy for 2013 and 2014.

“The swings in the moves up just aren’t strong enough. The bears are in control. You’re looking at a credit crunch situation in China,” said Darren Courtney-Cook, head of trading at Central Markets Investment Management. (Reporting by Simon Jessop, Sudip Kar-Gupta and Blaise Robinson; editing by Tricia Wright)

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