Mining stocks drove the FTSE 100 lower on Monday, sending it closer to a key support level as investors refocused on concerns about the outlook for the global economy.
Miners <.FTNMX1770> knocked 12 points off the FTSE 100 index, with Anglo American
The sector has fallen around 5 percent since the release of weak manufacturing data out of China, the world's top consumer of metals, late last week.
In a note, JPMorgan recommended banking recent gains because the impact of stalling global - and particularly Chinese - growth momentum was offsetting the modest boost generating by a new U.S. Federal Reserve asset buying programme.
The brokers' top picks in the sector are Rio Tinto
Xstrata was the biggest UK blue-chip casualty on Friday, off 4.2 percent following the surprise news it had secured an extra week to say whether it would recommend the Glencore offer to its shareholders.
The FTSE 100 <.FTSE> shed 29.89 points, or 0.5 percent, to 5,822.73 by 9:26 a.m., having closed flat on Friday to record a weekly loss of 1.1 percent after two consecutive weeks of gains.
A weaker-than-expected Ifo business climate survey for September in Germany added to the negative sentiment.
"Quite a big day for the FTSE today with the 5,800 level technically a very important support level," said Lex van Dam, hedge fund manager at Hampstead Capital, which manages around $500 million of assets.
"If we can't hold that then chances are that the rally from the start of June has now finished and that further downside will be most likely."
Lynnden Branigan, technical analyst at Barclays Capital reckoned that further weakness would be seen by many as a buying opportunity.
"I think the likelihood is that people will probably look to be buying dips for the time being... I think people will start to buy around 5,800," he said, adding that the index could see an initial bounce up to 5,900, near the peak from Sept 19.
(Reporting by Tricia Wright; Editing by John Stonestreet)