FTSE ends lower on China data; Hargreaves Lansdown outperforms

LONDON: Britain's top share index fell for a third straight session on Wednesday, pulled lower by stocks exposed to China after data there hinted that deflationary pressures were building.

However, shares in Hargreaves Lansdown gained after saying new business reached a record high.

Among the stocks hurt by exposure to China were Asia-focused bank Standard Chartered and luxury firm Burberry , down as much as 1.4 percent.

They fell after consumer inflation in China slowed more than expected in September. Producer prices also extended their slide to a 43rd straight month, adding to concerns about deflationary pressures in the world's second-largest economy.

The data came just a day after figures that showed imports had slumped, hitting many of the same sectors.

"In the short-term, sentiment appears to have turned substantially negative again ... Chinese inflation data has come in well below expectations overnight," said Markus Huber, senior analyst at Peregrine & Black.

Housebuilders also came under pressure as some investors took profits after a recent strong run, traders said. Shares in Taylor Wimpey, Persimmon and Barratt Developments fell 3.1 to 3.6 percent.

Britain's FTSE 100 closed 1.2 percent weaker at 6,269.61 points, down for a third straight session and about 2 percent lower for the week.

The index is 12 percent off of the record highs it reached in April. Concern over Chinese growth contributed to the decline, after the country allowed its currency to devalue in August.

The market turmoil hurt the results of Hargreaves Lansdown. It said first-quarter assets under administration fell by 500 million pounds, weighed by stock market falls.

But the stock rose 3.7 percent to its highest level in more than a year after the update, because new business inflows climbed to a record high. Brokerage Numis described it as a "strong trading update" despite difficult market conditions.

"The group's scale benefits are substantial and unmatched providing it with by far the highest operating margin and the buying power to provide the cheapest fund prices in the market," Numis said in a note, raising its earning forecasts and rating the stock a "buy".