LONDON: Miners and oil stocks led Britain's leading share index lower on Tuesday on worries the global recovery was stalling, as sluggish euro zone data halted a three-day recovery rally.
Weaker-than-expected euro zone gross domestic product data intensified worries that global growth was slowing, with a below forecast reading from Germany, Europe's largest economy, having a knock-on effect in the region.
Mining and oil stocks, which tend to perform better when global growth is strong, were among the worst performers.
Out of the oils, heavyweight BP was a stand-out loser, down 1.9 percent.
Copper miners Antofagasta and Kazakhmys lost 2.6 percent and 2.5 percent respectively to feature in the FTSE 100 worst performer list as copper prices fell on a weaker global outlook.
"German GDP numbers were very weak, Germany has been seen as the engine of European growth and the market has turned weaker," said Richard Hunter, head of UK equities at Hargreaves Lansdown.
By 1104 GMT, the FTSE 100 index was down 70.47 points, or 1.3 percent at 5280.13, after rallying for the past three session from being "oversold" -- its 14-day relative strength index had dipped under 30 in the days preceding the rally. An RSI of 30 or below is considered oversold.
The FTSE 100 has fallen nearly 13 percent in the past five and a half weeks, following worries about a slowdown in global growth as well as concerns about the debt situation in the United States and the euro zone.
"The market is in a dire need of a positive catalyst to enable it to go higher and that will only come when concrete plans emerge to help the situation in the US and euro zone," Hunter said.
The index dipped below the 38.2 percent retracement of its July to August sell-off or 5,284.96, with the next support level seen at its 23.6 percent retracement at 5,096.17.
Bucking the trend was gold miner Rangold Resources , which topped the FTSE 100 best performers list, up 2.2 percent, as gold prices seen as a safe haven rose on the uncertainty economic environment.
EURO ZONE DEBT TALK WORRIES
Adding to worries about growth were concerns about how policymakers's were dealing with the euro zone debt crisis.
French President Nicolas Sarkozy and German Chancellor Angela Merkel were to meet at 1400 GMT to discuss action needed to contain the euro zone debt crisis.
The banking sector, hit by worries of contagion in the euro zone debt crisis, was another stand out loser, with the down 1.6 percent.
Copyright Reuters, 2011
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