London’s blue chip stocks sunk this morning as a new Greek deadline and disappointing Chinese data weighed on the FTSE 100.
Analysts believe Beijing may have to ramp up its stimulus programme after world’s second-largest economy revealed disappointing producer prices, consumer inflation and trade numbers.
China saw its biggest exports fall for 4 months, with lower than excepted import figures joining the fray, but the prospect of monetary easing actually led to a 3.5% rise in the Shanghai Composite Index.
Meanwhile, Greece is claiming that negotiations on a new debt deal could successfully end as early as tomorrow morning, leaving the Greek saga firmly on track for a somewhat happy ending.
It needs to complete a deal before the next payment to the European Central Bank is due on August 20.
In the UK, Footsie dropped 63 points to 6,655 with miners languishing at the bottom of the index.
Antofagasta was near the bottom after Liberum repeated a 'sell' stance on the mining share.
It does not expect to see a "sustained" recovery in the copper price until the inflection point of supply and demand in 2017 as China's economy shifts over the next two years to services rather than investment. Shares eased 2.5% to 574p.
Away from the index, vehicle insurance provider esure (LON:ESUR) was the biggest faller in the midcap space, as it cut its interim dividend as profits dropped.
The Sheila's Wheels insurance GoCompare.com price comparison site owner, said pre-tax profit fell 21% to £46.5mln in the six months to the end of June.
In small caps, Nostrum Oil & Gas, has made the latest approach for Tethys Petroleum (LON:TPL, TSE:TPL), a company it has been after for some time.
The offer is for C$0.2185 per share and Nostrum has also agreed to provide an unsecured US$5mln loan facility to Tethys. Shares in Tethys jumped 8.5% to 8p.
Meanwhile, North Sea oil explorer Independent Oil & Gas (LON:IOG) has been left in the lurch by an unnamed big cap backer, which has pulled out of a planned investment in the firm as a result of falling oil prices. Shares plunged 56% to 5.1p.