K stock markets slipped into the red on Monday amid renewed concerns over the health of the world’s second-biggest economy.
News that one of China’s biggest property developers, Country Garden, was on shaky ground weighed on global investor sentiment.
The company suspended trading in some of its mainland bonds, sparking fears over the nation’s real estate sector and fuelling losses for property stocks and internationally-focused miners.
London’s FTSE 100 lost strength and closed 17.01 points lower, or 0.23%, to 7,507.15 on Monday.
It comes ahead of two important official datasets later in the week, with the Office for National Statistics releasing labour market data on Tuesday and the latest inflation figures on Wednesday.
Other European markets were in a stronger position and Germany’s Dax lifted 0.46%, while France’s Cac was up 0.12%.
In the US, the S&P 500 started trading on solid footing, up 0.5%, while the Dow Jones was up 0.15% by the time European markets closed.
The pound was flat against the US dollar to 1.269, and up about 0.2% against the euro to 1.162.
Michael Hewson, chief market analyst for CMC Markets UK, said: “Despite starting the week on the back foot on account of a weak Asia session, and concerns over the Chinese real estate market, European markets tried to rally in early trading, but have spent the day struggling for gains as they look to recover some ground after two weeks of losses.
“The FTSE 100 especially has struggled, slipping back due to weakness in basic resources, energy, and the real estate sector, with mining and energy stocks sliding back on concern over Chinese demand.”
The price of Brent crude oil was down 0.6% to 86.3 US dollars per barrel.
In company news, shares in Lok’nStore inched up after the self-storage business said demand for its services remained strong even as it bumped up prices last year.
The business said its occupancy rates had remained steady and it was investing in new sites as it reported its full-year results. Its share price was up 1.9%.
Meanwhile, online trading business Plus500 saw its share price fall back from highs in the morning.
It came after the London-listed firm revealed a slump in sales and earnings in the face of reduced trading activity, but said it was handing out more cash to shareholders. Its share price closed 1% higher after bouncing about 5% on Monday morning.
Elsewhere, budget retailer B&M jumped to the top of the FTSE 100 after reports that rival Wilko, which collapsed into administration last week, has until Wednesday to receive suitable rescue bids. Its share price jumped by 3%.
The biggest risers on the FTSE 100 were B&M European Value Retail, up 16.2p to 554p, Airtel Africa, up 3.4p to 119p, JD Sports Fashion, up 3.15p to 146.45p, Coca-Cola HBC, up 39p to 2,326p, and Hargreaves Lansdown, up 13.4p to 801.2p.
The biggest fallers on the FTSE 100 were Ocado Group, down 36p to 796.2p, Anglo American, down 77p to 2,074p, Entain, down 42.5p to 1,270p, Persimmon, down 34p to 1,095.5p, and Fresnillo, down 15.2p to 525.4p.