UK Stocks closing : Britain’s top share index retreated from a key technical level on Thursday, after trade data from China revived concerns about weak economic growth that hit heavy-weight miners.

China reported its trade surplus narrowed in September for a second month in a row as growth in exports and imports both came in below forecasts.

The International Monetary Fund (IMF) warned that near-term risks to Asia’s economies are decidedly rising, while a Reuters poll found that stagnation is probably the best many of the world’s biggest developed economies can hope for over the next year.

The dim view of global growth was the catalyst for investors to cut their positions in the mining sector , which had run up almost 20 percent of gains in the last seven trading days.

Even Rio Tinto wasn’t spared in the broad-based sell-off, falling 2.3 percent despite a bullish quarterly update and outlook statement.

Anglo American fell almost 4.7 percent as analysts said if Chilean state copper giant Codelco exercised an option to buy a 49 percent stake in Anglo American Sur, it could stunt the miner’s growth strategy.

There could be more reaction from miners on Friday after the overnight release of Chinese inflation data, which will be used to gauge the likely next steps for Chinese monetary policy.

The main driver for stock gains over the previous week has been attributed to euro zone politicians making more positive comments about shoring up the region’s battered banking sector and finding a solution to the debt crisis.

But commentators remain to be convinced, believing that firmer actions not just words are needed to sustain recent gains.

The hot air that has lifted these markets of late, based largely on more sustained confidence in our Eurozone leaders executing a plan is quite bewildering, Mike McCudden, head of retail derivatives at Interactive Investor, said.

Following recent client trading behaviour you get the impression that they want to be short, but are not ready to commit.

McCudden said, however, that he expects more quantitative easing from the UK and potentially the euro zone announcing the financing of a super stability fund, which could be the catalyst to push the market on.

TECHNICAL CONCERNS

London’s blue-chip index shed 38.42 points, or 0.7 percent, to 5,403.38, having earlier hit an intraday high of 5456.09, as the bulls tried to break through a ceiling that has capped index gains over the past few months.

The FTSE 100 has struggled over the past 24 hours to push out beyond technical resistance at the 5450 level, a London-based trader said.

He said traders were watching for a break below 5,348 which could confirm a test failure at the 5,450 technical level, which along with low volumes would be a clear sign that the bulls were yet to be in control of this market.

Investors locked in profits in the banking sector , which had gained more than 16 percent over the past seven days on hope for action on the debt crisis.

Other financial stocks showed the impact the debt crisis is having on their businesses.

Ashmore slid 4 percent in heavy trade after the emerging markets-focused investment house reported assets fell 10 percent in the last quarter.

Hedge fund firm Man Group , which on Wednesday said its flagship hedge fund posted heavy losses last week, fell 4 percent, while fund manager Schroders shed 3.9 percent as it got caught up in the sell-off.

Sentiment wasn’t helped later the session as U.S. peer JPMorgan Chase & Co , the top faller on a sharply lower Dow Jones , said quarterly earnings fell 4 percent as the European debt crisis pushed investment banking clients to the sidelines.

Bucking the broader trend for the financials was Hargreaves Lansdown , up 3.9 percent, after the British investment manager reported a robust quarterly performance against the backdrop of falling markets.

Away from financials, Rolls-Royce hit an all-time high, rising 9.9 percent in strong volume after Pratt & Whitney said it would spend $1.5 billion to buy the UK aero engine maker’s share of the International Aero Engines consortium that produces engines for Airbus’s A320 plane family.