Fears rapid economic growth will ratchet Chinese interest rates weighed on global equity markets yesterday.
Data showing China's economy grew 11.1 per cent from a year earlier in the first quarter and inflation rose to 3.3 per cent in March hardened expectations tighter monetary policy will be needed to cool the boom.
"The Chinese economy is running at a very fast pace and this could bring interest rate worries," said Christophe Donay, a strategist at Kepler Equities.
Premier Wen Jiabao said
money supply and credit were growing too fast and China needed to act to prevent an overheated economy.
European stocks slipped for a second day with the FTSEurofirst 300 down 0.7 per cent at1,553 points after hitting a more than six-year high this week.
Miners were among the worst performers in Europe on worries measures to dampen demand in China will weigh on commodities. London's blue chip FTSE 100 index lost more than 60 points.