FTSE 100 on track for third straight day of losses 

Stocks in the U.K. dropped Wednesday, driven lower alongside Asian and other European markets after the release of yet more disappointing Chinese data underscored concerns about economic growth in that country.

The FTSE 100 UKX, -0.75%  fell 0.7% to 6,297.19. The index slipped 0.5% on Tuesday as downbeat Chinese trade data weighed on commodity stocks, after a losing session on Monday.

Meanwhile, the pound recovered lost ground against the U.S. dollar following an update on the U.K. labor market.

China’s consumer-price index rose 1.6% in September from a year earlier. That was slower than a 2.% rise in August and less than the 1.8% gain expected by economists polled by The Wall Street Journal.

“The weak inflation data, along with other disappointing releases recently such as yesterday’s trade figure, makes more monetary easing and fiscal stimulus very likely if China is to achieve something close to the 7% growth it targeted at the beginning of the year,” said Craig Erlam, senior market analyst at Oanda, in a note.

Asian stocks fell following the data, leaving the Shanghai CompositeSHCOMP, -0.93%  down 0.9%. The Stoxx Europe 600 SXXP, -0.43%  was off 0.8%.

Movers: But back on the FTSE 100, Fresnillo PLC FRES, +1.70%  shares were trading higher by 1.6% after the precious metals miner said it remains on track to meet its full-year silver and gold output targets.

A Wednesday gain in gold prices GCZ5, +1.00% to a three-month high helped lift Fresnillo shares as well as those of Randgold Resources Ltd. RRS, +1.31%  , which picked up 0.4%. Fresnillo said it’s prepared if necessary to cut its 2016 budget for capital expenditure if gold and silver prices fall further.

Elsewhere, shares of Diageo PLC DGE, -1.63%  were off 1.2% after the alcoholic beverage company said it’s agreed to sell its U.S. and U.K.-based wine operations to Australia’s Treasury Wine Estates Ltd. TWE, +0.46%  for $552 million.

Topping the FTSE 100 was Hargreaves Lansdown PLC HL., +3.82%  , higher by 5.1% as the financial-services company posted a nearly 50% rise in net new business inflows in its fiscal first quarter.

Pound: The pound GBPUSD, +1.0690%  was buying $1.5358, but it had fallen to $1.5283 in the wake of August jobs figures from the Office for National Statistics. Average weekly earnings excluding bonuses rose 2.8%, missing expectations of a 3% in a FactSet poll of analysts.

The unemployment rate, meanwhile, dipped to 5.4% from 5.5% in August.

“With fresh risks emerging in late summer, namely the China slowdown and [emerging markets] crisis, the risk that unemployment could begin to tick up had increased. Today’s data should soften these concerns,” said Kallum Pickering, senior U.K. economist at Berenberg, in a note.

Overall, the U.K. economy “is progressing broadly in line with our outlook, which is consistent with our call that the Bank of England will raise rates by 25 basis point in February 2016,” said Pickering.

The pound was trading around $1.5316 ahead of the data. Late Tuesday, sterling fetched $1.5248.

Source: MarketWatch – FTSE 100 on track for third straight day of losses