LONDON: UK shares stumbled on Wednesday as commodity-related companies were hit by fresh worries over weakness in China, the world's largest consumer of metals, while North Korea's nuclear test dented wider confidence.
The People's Bank of China set a weaker midpoint for the yuan, and a private survey showed that activity in China's services sector expanded at its slowest rate in 17 months in December.
The FTSE 350 Mining Index fell 2.5, with BHP Billiton, Antofagasta, Rio Tinto, Glencore and Anglo American down between 1.1 and 3.8 percent.
"We are in a new world - China's not growing (in) double digits, demand for raw materials has fallen through the floor and it's both a supply and demand side problem," Mike van Dulken, head of research at Accendo Markets, said.
The blue-chip FTSE 100 index was down 0.8 at 6,090.23 points at 0926 GMT, slightly underperforming the broader European market.
Oil and gas shares were also under pressure, with BG Group and Royal Dutch Shell retreating 0.2 and 0.7 percent respectively as the price of oil slipped below $36 a barrel on concerns over growing supply and rising stock levels.
Also in negative territory was chipmaker ARM Holdings , down 3 percent and hitting its lowest level in over two months after Nikkei reported that Apple is expected to cut production of its iPhone 6S and 6S plus models by around 30 percent in the January to March quarter.
Investor sentiment was cooled further after North Korea, which has been under UN Security Council sanctions, said that it had successfully tested a miniaturised hydrogen nuclear device on Wednesday, reigniting geopolitical tensions.
The FTSE 350 Aerospace and Defence index advanced 0.6 percent, with BAE Systems the top gainer, up 1.8 percent.
Also among the top gainers was Royal Mail, rising 1.6 percent after Barclays upgraded its price target on the stock.
Analysts said that the company was in period of transformation with higher growth than its postal peers on the cards for the next few years.
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