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European shares edge lower, weighed down by China concerns

Published 10/08/2015, 06:40 pm
Updated 10/08/2015, 06:46 pm
© Reuters.  European shares edge lower, weighed down by China concerns
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* FTSEurofirst down 0.6 pct

* Euro STOXX 50 down 0.3 pct

* BHP Billiton down 2.5 pct after job cut

By Liisa Tuhkanen

LONDON, Aug 10 (Reuters) - European shares edged lower on Monday as disappointing economic data out of China and falls in mining companies BHP Billiton BLT.L and Anglo American AAL.L weighed on the market.

The euro zone's blue-chip Euro STOXX 50 index .STOXX50E was down 0.3 percent by 0815 GMT, while the pan-European FTSEurofirst 300 index .FTEU3 edged 0.6 percent lower to 1,564.94 points. Both ended last week on a downbeat note, closing down 0.8 and 0.9 percent respectively.

"There is softness on the market on concerns over the Chinese economy," said Brenda Kelly, analyst at London Capital Group.

China is under growing pressure to further stimulate its economy after data over the weekend showed another heavy fall in factory-gate prices and a surprise slump in exports.

The world's second-largest economy is officially targeted to grow at 7 percent this year, still strong by global standards, but some economists believe it is expanding at a much slower pace.

"I think we can probably come to expect GDP number later on this week of less than 7 percent. It's going to be very difficult for China to actually come good on that one," Kelly said.

Among individual movers, miner BHP Billiton BLT.L dropped 2.5 percent after saying it would cut 380 jobs at its Olympic Dam copper and uranium mine in Australia, citing global market conditions in the resources sector and a desire to ensure the project was sustainable.

Rival Anglo American AAL.L also fell more than 2 percent after a Chilean newspaper reported that a British investment fund will buy Anglo's Chilean copper assets.

On the upside, JCDecaux JCDX.PA rose 2.6 percent after its co-chief executive Jean-Francois Decaux told the Financial Times that the company could double its market share in the next decade.

(Editing by Keith Weir)

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