LONDON: European shares made their longest losing streak in four months on Thursday, piercing a support level, led by miners after weak China and euro zone PMI data suggested growth was slowing, with chartists saying there were further losses to come.
The cyclical mining sector, whose performance has been correlated to growth in the global economy, was the main drag in Europe, with the STOXX Europe 600 Basic Resources index down 3.3 percent.
"For mining shares it has big implications, the China data means there will a reduction in resource demand if construction slows in the country," Darren Sinden, senior sales trader at Silverwind Securities, said.
"The China PMI's are lending weight to a case of a hard landing and if Germany is the better part of Europe and it cannot grow, the situation for the markets will be difficult."
Selling was most active in gold miner Randgold Resources , down 12.5 percent in volume more than seven times its 90-day daily average, also hit by concerns about unrest in Mali, where the firm has roughly two-thirds of its production.
The pan-European FTSEurofirst 300 index of top shares provisionally closed down 1.1 percent at 1,079.26 points and broke a support level at 1,091 which represents its February highs.
Chartists have said the break below 1,091 may herald a drop to 1,067 - its 50 day moving average - which may tempt buyers back into the market.
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