Britain's top share index slipped on Monday as news of China's slowing economy sapped mining stocks and drugmaker Shire dipped after US regulators withheld approval for a new drug. Britain's FTSE 100 index closed down 25.71 points, 0.4 percent, at 6,352.33 points at the close, underperforming European indexes. Mining shares fell along with metals prices after China reported that economic growth slowed in the third quarter. While the data were slightly stronger than expected, growth was still at its weakest since 2009, reflecting a sluggish global economy that is hurting demand for metals.
Anglo American fell 7.4 percent. Glencore, Antofagasta and BHP Billiton were all down 3 to 5.2 percent. Chinese manufacturing data came in weaker than forecast. "Given the relatively poor performance of manufacturing, that is probably a reason why ... mining stocks have taken a little bit of a dent," said Laith Khalaf, senior analyst at Hargreaves Lansdown.
Despite a rally of around 5 percent so far in October, the FTSE 100 remains down about 10 percent from record highs reached in April. Pharmaceutical company Shire turned positive in afternoon trade. The stock had fallen after the US Food and Drug Administration declined to approve its dry-eye drug, lifitegrast, and requested an additional clinical study. Shire's chief executive said the company still plans a potential 2016 launch for the drug.
"We believe the CRL (Complete Response Letter) was fairly well anticipated by the market, with Shire having been warning of the risk of a delay, pending more clinical data, for the last few months," analysts at J.P. Morgan wrote in a note. Barclays rose 1.5 percent after Financial Times report that it will speed up the reduction in size of its investment bank.