By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — Miners led U.K.’s FTSE 100 index to a fourth straight day of losses on Monday after Goldman Sachs cut its growth forecast for China.
The U.K. benchmark /zigman2/quotes/210598409/delayed UK:UKX -0.49% gave up 1.4% to close at 6,029.10, marking the largest four-day percentage decline since Nov. 22, 2011.
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Mining firms posted some of the biggest drops in the index after analysts at Goldman Sachs lowered their 2013 forecast for Chinese growth to 7.4% from the 7.8% expected previously, and cut its 2014 outlook to 7.7% from 8.4%.
Additionally, analysts at the bank cut their outlook on the metal for 2013 and 2014, citing growing price risks from a brightening U.S. economic picture. The bank now expects gold to end this year at $1,300 a troy ounce, down 9.4% on its previous forecast. It sees gold ending 2014 at $1,050 an ounce, down 17.3% on its earlier outlook.
Shares of Vedanta Resources PLC dropped 6.5%, Rio Tinto PLC /zigman2/quotes/208934945/delayed UK:RIO +0.01% /zigman2/quotes/202627887/composite RIO -2.03% /zigman2/quotes/200083756/delayed AU:RIO -1.36% lost 3.4%, Anglo American PLC /zigman2/quotes/201381512/delayed UK:AAL -0.67% fell 1.9% and BHP Billiton PLC /zigman2/quotes/208108397/composite BHP -0.92% /zigman2/quotes/201448516/delayed AU:BHP -0.63% eased 1.8%.
Shares of Kazakhmys PLC /zigman2/quotes/208098927/delayed UK:KAZ -0.28% tanked 13% after the firm said it would sell its entire 26% stake in Eurasian Natural Resources Corp to the firm’s billionaire founders and the Kazakhstan government. Shares of ENRC dropped 1.4%.
Cliffs Natural Resources Inc.
Worries about a liquidity squeeze in China also weighed on the broader market after Beijing seemed reluctant to change its tightening policy, even as interbank lending rates surged to record highs last week .
The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +0.22% plunged 5.3%, its worst one-day percentage loss in nearly four years.
Banks were lower in London. Shares of Barclays PLC /zigman2/quotes/208409333/delayed UK:BARC -2.97% /zigman2/quotes/206581728/composite BCS -4.74% lost 0.9% and HSBC Holdings PLC /zigman2/quotes/203901799/delayed UK:HSBA -0.88% fell 0.9%.
Among other notable movers, shares of J Sainsbury PLC /zigman2/quotes/206038250/delayed UK:SBRY -1.50% shaved off 2.4% after analysts at Citigroup cut the supermarket retailer to sell from neutral.
Wm. Morrison Supermarkets PLC /zigman2/quotes/205533138/delayed UK:MRW -0.41% was cut to neutral from buy, sending the shares 1.5% lower.
Shares of peer firm Tesco PLC /zigman2/quotes/203761082/delayed UK:TSCO -0.61% lost 1.4%.