The headquarters of BHP Billiton in Melbourne, Australia. Shares of the mining company closed down 1.46% at 1,080.5 pence yesterday in London.

AFP
London

Europe’s main stock markets dropped slightly yesterday as investors continued to fret over the broader global impact of China’s economic slowdown, dealers said.
London’s benchmark FTSE 100 index was off 0.11% to close at 6,345.13 points, Frankfurt’s DAX 30 index was down 0.16% to 10,147.68 points and the Paris CAC 40 shed 0.64% to 4,673.81.
Asia had closed on a rebound, with Shanghai ending 1.14% higher and Tokyo and Seoul marginally ahead as traders bet on China’s leaders unveiling a fresh batch of economic stimulus measures.
Investors were poring over news that China’s economy expanded in the third quarter at its slowest rate since early 2009 at the height of the global financial crisis.
“European equities ... continue to struggle with deciphering the weak Chinese GDP figure yesterday and how much of a warning flag it should be for the rest of the global economy,” said Jonathan Sudaria at London Capital Group yesterday.
“Should this be a case of bad news is good news, and expect the central banks to pump up equities in the near future, or does a more sinister path lie ahead - such as the one put out by Citi recently that suggests China could drag everyone down into a global recession?”
The US bank had warned late last week that there was a risk of a “contagious slowdown” from China and other emerging markets that “increased the likelihood of a global recession” next year.
Wall Street was slightly lower yesterday on mixed earnings including a disappointing report from tech giant IBM which sent shares tumbling after a 14th straight quarter of falling revenues led to a trimmed full-year profit forecast.
Near mid-day in New York, the Dow Jones Industrial Average was essentially flat at 17,227.30, while the broad-based S&P 500 slipped 0.04% to 2,032.81. The tech-rich Nasdaq Composite Index was down 0.28% to 4,891.50.
In London, some mining stocks fell again yesterday on demand fears because the Asian powerhouse is a leading consumer of many commodities. BHP Billiton sank 1.46% to close at 1,080.5 pence and Rio Tinto shed 1.14% to 2,412.18 pence.
China also remained in focus after India’s Tata Steel axed about 1,200 jobs at two plants in Britain, blaming the move in part on cheap Chinese imports.
The Tata announcement coincided with the start of a four-day visit to Britain by Chinese President Xi Jinping, who is aiming to build closer business ties.
Also coinciding with Xi’s visit, the People’s Bank of China yesterday launched a yuan-denominated bond in London for the first time as it seeks to internationalise its currency.
The debt sale worth 5.0bn yuan (€690mn) for one-year bonds with a yield of 3.5% was heavily oversubscribed according to a banking source.
French and British media have reported that China has agreed to take a stake in French power giant EDF’s £25bn (€34bn) next-generation nuclear power project at Hinkley Point in Britain.
China is taking a 33.5% share in the construction of two reactors at Hinkley Point, southwestern England, in a deal signed by EDF with China General Nuclear Power Corp and China National Nuclear Corp, Les Echos newspaper said.
EDF saw its share price rise 0.75% to €17.35 in Paris.