* FTSE 100 down 2.3 pct after China data, outperforms Europe
* Mining stocks BHP Billiton, Anglo American down over 4 pct
* Only two FTSE 100 components in positive territory
* Man Group down 5.8 pct after report of China arrest
* Rentokil up after acquisition
LONDON, Sept 1 (Reuters) - UK shares fell more than 2 percent on Tuesday, set for their worst one-day fall in over a week and with miners hit hardest after a slump in the manufacturing sector in China - the world’s biggest commodity consumer - rattled global markets.
Declines were broad-based, with only two FTSE 100 stocks were in positive territory at 0815 GMT on Tuesday, London’s first trading day of the week after a public holiday on Monday.
Policymakers worldwide have turned more interventionist with a surge in market volatility to levels not seen since the 2008 financial crisis. China’s central bank has already repeatedly intervened to stabilise the yuan since its Aug. 11 devaluation sent shockwaves through global markets.
”We are sellers across the board,“ said Mark Ward, head of execution trading at London-based Sanlam Securities. ”People are getting back from holidays and trying to make sense of what is going on.
“The China headlines are not helping but I would say it’s probably more down to sentiment than a huge shift in the actual economic outlook.”
The FTSE 100 was down 2.3 percent, a touch better than the pan-European FTSEurofirst 300, down 2.6 percent. Miners Glencore, Anglo American and BHP Billiton were down more than 4 percent as metals prices fell on China demand fears.
China worries also hit shares of hedge-fund manager Man Group, down 5.8 percent after the boss of its China unit was reported taken into custody as part of a probe into recent market volatility.
Rentokil got a lift, meanwhile, from its biggest deal in 10 years with an agreement to buy pest control business Steritech for $425 million. Its shares rose 3 percent.
Canada’s Valeant Pharmaceuticals International Inc said it is buying rights to AstraZeneca Plc’s late-stage experimental psoriasis drug brodalumab after it was dropped by Amgen Inc in May. AstraZeneca shares were down 2.6 percent. (Reporting by Lionel Laurent; editing by John Stonestreet)