Press Association
Sunday 12th February 2012
The FTSE 100 Index dropped back below the 5600 level as concerns over moves to calm China's economy hit mining stocks hard.
Fears that China may take potential monetary policy action to ease inflation and therefore dent demand for commodities saw metal prices drop sharply, sending blue chip miners into the red.
Early session falls on America's Dow Jones Industrial Average added to the downbeat sentiment and left the wider FTSE 100 Index closing down 31.8 points at 5593.9.
And in currency news, the pound slipped against the dollar after another round of opinion polls fuelled anxiety over the prospect of a hung parliament.
US stocks fell after sentiment was impacted following news that Moody's believes the US could eventually lose its top-notch credit rating.
This came after mixed reports on manufacturing activity, with data showing it slowed in New York in March, while another revealed a rise in nationwide industrial production last month.
American investors also fretted over the strength of the economic recovery and energy demand, which knocked oil prices below 80 dollars for the first time in nearly two weeks.
Wall Street anxiety was compounded further ahead of a new banking bill due to be unveiled in the US on Tuesday, with uncertainty over whether the bill would get the necessary support from the Senate.
