Late rally stems FTSE losses

A late rally from London's leading shares stemmed losses on the market, after stocks around the world headed into the red following shock data from China which suggested its economy may be out of control.

The FTSE 100 Index closed down 8.8 points at 6440.6, following a fall of more than 60 points earlier in the day on news that China's economy grew at 11.1% in the first quarter.

Miners took the brunt of the impact amid fears China would up interest rates and curb its demand for raw materials.

Falls in base metal prices such as copper pushed Antofagasta to the top of the Footsie fallers' board with a loss of 2%, or 10.75p to 510.25p. It was followed by sector counterpart Vedanta Resources, which was off 26p at 1374p.

Worries over higher interest rates and the impact of the strong pound against the dollar also impacted on the London market.

Fashion retailer Next was among the casualties, down 27p at 2189p, while B&Q owner Kingfisher slipped 3p to 258.5p amid fears over trading prospects. At the same time, currency pressures left BAE Systems off 6.25p at 447.25p.

Interest rate concerns also hung over housebuilder Persimmon, even though it said trading had been in line with record levels seen last year. Shares made a steady start but closed down 26p at 1404p.

Among its second-tier rivals, Bellway fell 64p to 1570p after ABN Amro cut its rating on the stock.

Life insurer Prudential was the biggest Footsie gainer of the session, up more than 1%, or 11.5p, at 745p after releasing details of its first quarter sales figures.

The group said total UK sales were down 23%, with drops in net fund inflows in its asset management arm M&G as well. But Pru offered good news on its overseas businesses and sought to reassure that its UK turnaround strategy would soon lift the division out of the doldrums.