By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks moved sharply lower amid a
broader selloff in Europe, with travel stocks and health-care
companies posting some of the biggest losses. Rio Tinto PLC curbed
losses for the FTSE 100 after confirming it rebuffed a takeover
proposal from Glencore PLC in July.
The FTSE 100 index slumped 1% to 6,495.58 falling alongside the
other major benchmarks in Europe. The weakness came after another
reading on the German industrial sector confirmed that the
eurozone's largest economy is losing steam.
Industrial production data for the U.K. showed factory outputs
slowed in August to 0.1% growth, driven by weaker exports and auto
makers shutting down during the summer.
Among major decliners in the FTSE, shares of International
Consolidated Airlines Group SA (ICAGY), parent of British Airways
and Iberia, slid 6.9% amid fears that an Ebola case in Madrid could
cause travel disruptions. Shares of easyJet PLC lost 5.3%, while
travel operator TUI Travel PLC dropped 3.9%.
Health-care companies declined after Morgan Stanley cut the
sector to underweight. Shares of Shire PLC lost 2.5%,
GlaxoSmithKline PLC (GSK) fell 1.9% and AstraZeneca PLC (AZN)
shaved off 1.4%.
Rio Tinto (RIO) added 0.8% after the miner said a deal with
Glencore wasn't in the best interests of shareholders, and that
there had been no contact with the commodities producer and trader
since early August. The deal would have been one of the biggest in
mining history, creating a company worth about $160 billion.
"No discussions are taking place with Glencore," Rio Tinto said
in a statement. Glencore confirmed later in the trading day on
Tuesday that it is no longer actively considering a merger with Rio
Tinto.
Glencore shares were down 2.5% Tuesday.
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