The FTSE 100 was led lower by mining stocks – down 0.3pc to 6,374 – as another indicator of a sharp economic slowdown panicked investors.

European shares also eased back from three-month highs, with the pan-European FTSEurofirst 300 index down 0.3pc at 1,512. With US markets closed on Thursday due to Thanksgiving, analysts at IG said equity volumes were only at 60pc of the average November trading day.

• Chinese stocks plunge as regulators widen probe into market

Mike van Dulken, of Accendo Markets, said: “The negative opening call comes after a down day in Asia, with data showing Chinese industrial profits growth contracted sharply in October adding to worries about a hard economic landing.”

China’s economic woes also weighed heavily on London-listed commodity stocks, after official data showed Chinese industrial profits fell 4.6pc in October – its fifth consecutive month of declines.

The FTSE 350 mining index tumbled 2.2pc, with Anglo American the biggest faller down 5pc at 414p. BHP Billiton fell 2.2pc, Antofagasta slipped 1.9pc and Rio Tinto was changing hands at £22.31 – 1.7pc lower.

Mining giant Anglo American was also hit after it revealed plans to close its Drayton coal mine in Australia next year. The announcement came after a state panel recommend that the government should block an expansion of the mine as it would spoil the region.

Gold miners also fell into negative territory, as gold prices inched 0.7pc lower. Fresnillo and Randgold slumped by 3pc and 2.3pc respectively.

The disappointing data from China also had a negative impact on the oil price. Brent Crude fell back below the $45 per barrel mark – down 1.3pc. Royal Dutch Shell B shares and BP slipped by almost 1pc as a result. However, low-cost carrier easyJet was one of the main beneficiaries of the lower fuel costs – jumping 1.7pc to £16.55.

^{Brent crude January ’16 two day graph (Source: Bloomberg)}