LONDON, March 6 — Europe's main stock markets fell yesterday on fresh concerns over Chinese growth and after a rollercoaster start to the week caused by the crisis in Ukraine.

London's benchmark FTSE 100 index dropped 0.71 per cent to close at 6,775.42 points, with the heavyweight mining sector knocked by unease over China, traders said.

Frankfurt's DAX 30 slid 0.49 per cent to 9,542.02 points, and in Paris the CAC 40 dipped 0.11 per cent compared with Tuesday's closing values to 4,391.25.

“UK markets have taken a turn for the worse ... after more news from China and a number of disappointing updates weighed on the benchmark,” said CMC Markets trader Toby Morris.

“China re-affirming a 7.5-per cent growth target should be good news on recent form, but analysts have cast doubt over whether that is achievable... The lack of clarity has weighed on basic resources which is one of the worst performing sectors.”

Among the fallers were mining giants. Shares in Anglo-Australian Rio Tinto shed 3.3 per cent to 3,269 pence while rival BHP Billiton fell 2.3 per cent to 1,883 pence.

China's National People's Congress began its annual meeting yesterday, with Premier Li Keqiang saying the government was targeting 7.5 growth in 2014, unchanged from last year's forecast.

The figure is below the 7.7 per cent recorded in 2013 and 2012 — also the lowest growth rate since 1999.

Meanwhile, data released yesterday suggested the eurozone economic recovery is strengthening.

Gross domestic product accelerated to 0.3 per cent in the fourth quarter of 2013, while the Eurozone Composite Purchasing Managers Index (PMI), compiled by Markit Economics, showed that business activity expanded at the fastest rate in two-and-a-half years in February.

Tensions over Ukraine far from over

Following a slump at the start of the week, stock markets around the world mostly rebounded on Tuesday after Russian President Vladimir Putin declared there was “no need” yet to send troops into Ukraine.

Pro-Kremlin forces are in de facto control of the strategic, majority-Russian Crimean peninsula where Ukrainian troops remain blocked inside their barracks in the most serious stand-off between the West and Russia since the end of the Cold War.

“After the strong performance we have seen yesterday, markets have come back (down), with investors taking some profits,” said Varengold Bank trader Anita Paluch.

“The tensions between Russia and Ukraine are far from over and the softness is felt in Europe” trading yesterday.

In foreign exchange deals, the euro fell to US$1.3732 (RM4.49) from US$1.3742 late in New York on Tuesday.

The dollar climbed to ¥102.34 (RM3.27) from ¥102.21.

On the London Bullion Market, the price of gold rose to US$1,337 an ounce from US$1,334.75 on Tuesday.

Russia yesterday revealed it sold a record US$11.3 billion in foreign currency to support the ruble on March 3, during a “Black Monday” of panic selling over the crisis in Ukraine which analysts say rattled the Kremlin.

Jobs data hit US stocks

US stocks traded mixed yesterday after a report showed only modest private-sector jobs growth in February.

The Dow Jones Industrial Average slid 0.15 per cent to stand at 16,371.03 points in midday trading.

The broad-based S&P 500 edged up 0.03 per cent to 1,874.38, while the tech-rich Nasdaq Composite Index added 0.11 per cent to stand at 4,351.97.

Payrolls firm ADP said US businesses added just 139,000 jobs in February, well below the monthly average of 186,000 over the last year and below the 150,000 expected by analysts.

US stocks had soared on Tuesday and investors pushed the S&P 500 to its second record close in three days on signs of easing tensions over Ukraine.

Asian markets mostly closed higher yesterday, catching up with European and US gains the day before that had been won on the back of Putin playing down the prospect of war.

Elsewhere yesterday, Adidas shares fell 3.0 per cent to €71.42 (RM320.75) after a strong euro weighed on the 2013 results of the German maker of sportswear and equipment.

While Adidas said it was counting on the World Cup football championships in Brazil to boost sales and earnings this year, the forecasts were still below analysts' expectations. — AFP