Britain’s top equity index retreated from three-week highs on Monday, with commodity shares falling after a factory survey in China, a major consumer of metals and oils in the world, disappointed investors.

The blue-chip FTSE 100 index closed 0.4 per cent weaker at 6,060.10 points, after falling to an intra-day low of 5,993.84 points. The index hit a three-week high in the previous session, but is still down more than 3 per cent since the beginning of 2016 on China-related concerns.

The latest survey showed activity in China’s manufacturing sector contracted at its fastest pace in almost three-and-a-half years in January, missing expectations and marking the sixth straight month of factory activity contraction. “With a week heavy on both macro and corporate data, it’s all about PMI readings today and the manufacturing sector has not exactly given much to cheer about,” said Brenda Kelly, analyst at London Capital Group.

“The FTSE started well but has run out of steam at 6,100, led by the energy sector as oil ... once again flounders.”

The UK oil and gas and mining indexes fell 1.7 per cent and 0.6 per cent respectively after crude oil prices slumped about 4 per cent and key industrial metals prices also weakened.

Shares in BP and Royal Dutch Shell fell 2.6 per cent and 1.4 per cent respectively, tracking weaker oil prices and after Exane BNP Paribas and Deutsche Bank cut their target prices for the stocks.

Among miners, Rio Tinto, Glencore and Anglo American fell 1.0 to 1.7 per cent.

A sharp decline in metals prices in the past months mainly on growing concerns about their demand in China, the world’s top consumer, has lowered the weight of mining stocks in Britain’s benchmark index.

- Reuters