Market report: China’s commodities crunch undermines footsie giants

The Chinese ensured there was no Emmanuel Macron-inspired fete in the City today as disappointing imports from the world’s biggest consumer of raw materials dragged mining shares lower again.

Imports from China of base metals such as iron ore and copper were up 19% last month, but this was below March’s 26% rise and expectations of a 29% surge, signalling weaker industrial activity.

The data hit metals prices overnight and caused shares in heavyweight miners, which are heavily reliant on demand from China, to tumble.

Rio Tinto was down 50p, or 1.7%, to 2929p, BHP Billiton fell 19p, or 1.7%, to 1121p, and Chilean copper giant Antofagasta suffered a similar fate, retreating 15p, or 2%, to 754p.

It was the same story on the FTSE 250 as Vedanta Resources lost 27.5p to 600p and Kazakh copper miner Kaz Minerals fell 14.92p to 430.68p.

Weak manufacturing figures last week from China had the same impact on the sector, which has had a dreadful run this year after looking as though it was on the path to recovery.

The FTSE 100 was still on the rise, but only by 3.92 points to 7301.35 as Macron’s comfortable victory in the French elections had largely been priced in by markets last week.

IG’s chief market analyst Chris Beauchamp said: “Now that France is out of the way… markets can focus on other issues, such as the ongoing commodity crunch in China, something that has hitherto only worried mining investors. Perhaps now we’ll see it spread across a broader canvas.”

Pearson, off 10.25p at 729.25p, faded as investors took profits after Friday’s rally as under-pressure chief executive John Fallon shocked the market by identifying an extra £300 million in cost savings for the textbooks publisher.

Aviation services company BBA Aviation was the biggest loser on the mid-cap table. The shares fell 12.8p, 4%, to 301p after Citi analysts replaced their Buy rating with a Neutral.