By Carla Mozee and Victor Reklaitis, MarketWatch Credit Suisse remains underweight miners

LONDON (MarketWatch) -- U.K. stocks closed lower Thursday as a profit warning from British Gas's parent company weighed on its shares, while miners declined after a lackluster update on China's manufacturing sector.

The benchmark FTSE 100 index finished down 0.3%. Losses were trimmed after accelerating in the wake of downbeat manufacturing and services-activity figures from the eurozone, the U.K.'s largest trading partner.

Earlier Thursday, activity in China's manufacturing sector slowed in November, according to a closely watched report from HSBC, adding to worries about growth for a key buyer of metals. Pressure was on mining stocks after the report, leaving Rio Tinto PLC (RIO) and BHP Billiton PLC (BHP) both down by nearly 3%.

On Wednesday, shares of iron-ore producers were hit as iron-ore prices sagged to a more than five-year low.

Credit Suisse analysts said Thursday they remain underweight the mining sector. "On a one-to-three-year view, we see the risk of a hard landing in China as significant; in a bear market, 40% of production has to fall below cash costs (as with thermal coal), and that is not in the price," they said. "Top down, we find ourselves most bearish on copper, aluminum and carbon steel."

Also among FTSE 100 decliners, Centrica PLC shares slumped nearly 2% after the utilities company said it now expects full-year adjusted earnings of 19 pence to 20 pence a share, down from a previous expected range of 21 pence to 22 pence. Mild weather in the U.K. and trading conditions for British Gas Services are among the factors driving the profit forecast lower, the company said.

But Babcock International Group PLC , climbed almost 6% as the engineering services firm said interim profit rose to 114.1 million pounds ($178.5 million) from GBP91.6 million the previous year, on higher revenue of GBP1.94 billion.

Shares of chemicals and precious metals company Johnson Matthey PLC jumped 6% after the firm raised its profit view for the year.

Outside of the FTSE 100, Mothercare PLC shares advanced nearly 6% as the baby products retailer swinging to a half-year profit.

You're invited: A free evening event focusing on investing opportunities in Europe

Will you be in London on Dec. 3? Then you're invited to our MarketWatch Investing Insights event, "The worse Europe gets, the more you should invest."

Governments are in trouble, reform efforts have stalled, unemployment is climbing. The news from the eurozone is bleak, and investors are fleeing. But that's a mistake: The worse the economic data from Europe get, the more you should be buying. Why? Because actions by the ECB will boost asset prices and the stock market in particular. And, big exporters can grow sales. Lower costs and steady sales translate into higher profits and dividends. Join us for an evening of cocktails and conversation to explore these opportunities.

Our panel will be led by MarketWatch Columnist Matthew Lynn, a renowned financial journalist based in London and the author of "Bust: Greece, the euro and the Sovereign Debt Crisis." He'll be joined by Mark Hulbert, MarketWatch columnist and editor of the Hulbert Financial Digest.

This event is free, but RSVPs are required. It will be held Wednesday evening, Dec. 3, in London. For more information or to RSVP, send an email to marketwatchevent@wsj.com.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

BHP (NYSE:BBL)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more BHP Charts.
BHP (NYSE:BBL)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more BHP Charts.