LONDON: U.K. stocks declined as investors considered further indications that the Chinese economy is slowing down.
Bwin.party Digital Entertainment Plc dropped 1.5 percent after its takeover battle took another twist with a revised proposal from 888 Holdings Plc. BP Plc slid 1 percent as oil’s biggest three-day rally in 25 years stalled before U.S. government data forecast to show crude stockpiles expanded.
British American Tobacco Plc weighed heaviest on the FTSE 100 Index, falling 2 percent. Drugmakers were also a drag, with AstraZeneca Plc and GlaxoSmithKline Plc losing at least 2 percent. Shire Plc posted the biggest drop, falling 3.1 percent.
The FTSE 100 retreated 1.5 percent to 6,154.38 at 8:32 a.m. in London. The equity benchmark slid 6.7 percent in August, its worst month in more than three years, amid investor concern about global growth as China’s economy shows signs of weakening just as the Federal Reserve prepares to increase interest rates.
China’s official factory gauge contracted to a three-year low in August, as monetary easing failed to spur traditional growth drivers suffering from overcapacity and declining prices.
