London close: Gains erased after US data misses forecasts

Worse-than-expected economic data from the US saw markets across Europe erase their earlier gains on Tuesday, as the FTSE 100 fell into the red despite a strong performance in the mining sector..Home prices in the States continued to increase in May but at a worse-than-expected rate: the Federal Housing Finance Agency's house-price index rose by 0.7% during the month, slightly under the 0.8% increase estimated. April's rise was also revised lower from 0.7% to 0.5%.Meanwhile, the Federal Reserve Bank of Richmond's measure of manufacturing activity came in well below forecasts: the index dropped from 7.0 in June to -11 this month, surprising those who had expected a small rise to 9.0.The figures simply reinforced the fact that the Fed's timeframe for 'tapering' quantitative easing still remains incredibly uncertain, given Chairman Ben Bernanke's recent remarks that the impending phased withdrawal of stimulus remains conditional on incoming economic data. Chinese hopes boost markets early onEasing concerns over a 'hard landing' in China, a huge importer of commodities, sparked decent gains in the heavyweight mining sector in London this morning.Chinese Premier Li Keqiang is reported to have stood by the government target for economic growth of 7.5% in 2013 and assured that the pace of expansion would not fall below 7.0%: "this bottom line must not be crossed". He called for the government to allow China to grow within a "reasonable range", keeping activity above a "lower limit" and inflation below the "upper limit".Vice Premier Zhang Gaoli also said that the ruling party would continue to support infrastructure and social welfare investments.Market Analyst Craig Erlam from Alpari speculated that the government could announce new measures to boost growth: "While additional stimulus measures may not be ideal for China's long-term health, it's clearly seen as a positive thing now," he said.FTSE 100: Miners jump; Tullow sinks after well updateGlencore Xstrata, Vedanta, Rio Tinto, Fresnillo, ENRC, Anglo American, BHP Billiton and Antofagasta were making on the advance today on hopes for economic growth in China.Accountancy software firm Sage was also a high riser after saying it is confident of delivering its targets as trading in the third quarter was in line with expectations.Heading the other way was oil giant Tullow after the company said it had plugged and abandoned an exploration well in Mozambique and another in French Guiana.Budget airline easyJet was also in the red ahead of its third-quarter trading update due on Wednesday morning; British Airways owner IAG was also lower. The falls come after sector peer Ryanair announced its decision to sell its 29% stake in Irish airline Aer Lingus to another EU airline.Speciality chemicals firm Croda fell after its interim results, in which it reported a 6.3% year-on-year rise in pre-tax profit and an 8.4% increase in the dividend. The company admitted that the "challenging trading environment has inevitable held back certain parts of the business".Hotels group InterContinental was also out of favour after Exane BNP Paribas downgraded the stock to 'neutral' and cut its target price from 2,100p to 2,040p.FTSE 250: Imagination Tech slumps ahead of Apple resultsInvestors at chip designer Imagination Tech turned nervous today ahead of results from gadget giant Apple, the company's largest royalty payer, due out after the US closing bell this evening. Meanwhile, according to analyst Eoin Lambe from Liberum Capital, FTSE 100 peer ARM Holdings has "displaced" Imagination for an important design in one of Samsung's new chips.Insurance firm Beazley was also a heavy faller after profits fell in the first half due to reduced investment income and the impact of foreign exchange losses.Mining peers Hochschild Mining, Kazakhmys, African Barrick Gold and Ferrexpo were making solid gains, in line with the wider sector.FTSE 100 - RisersGlencore Xstrata (GLEN) 282.70p +5.09%Rio Tinto (RIO) 3,000.00p +3.36%Vedanta Resources (VED) 1,164.00p +3.28%Eurasian Natural Resources Corp. (ENRC) 219.30p +2.91%Fresnillo (FRES) 1,091.00p +2.54%Anglo American (AAL) 1,435.00p +2.14%BHP Billiton (BLT) 1,913.00p +1.97%Sage Group (SGE) 359.00p +1.76%Amec (AMEC) 1,072.00p +1.52%Randgold Resources Ltd. (RRS) 4,845.00p +1.42%FTSE 100 - FallersTullow Oil (TLW) 1,041.00p -6.64%Croda International (CRDA) 2,449.00p -4.67%easyJet (EZJ) 1,336.00p -3.68%Tate & Lyle (TATE) 823.50p -2.66%Weir Group (WEIR) 2,112.00p -2.54%British Sky Broadcasting Group (BSY) 830.00p -2.35%ITV (ITV) 154.80p -2.27%Whitbread (WTB) 3,116.00p -1.89%InterContinental Hotels Group (IHG) 1,931.00p -1.88%Aviva (AV.) 362.80p -1.68%FTSE 250 - RisersHochschild Mining (HOC) 164.00p +7.75%Kazakhmys (KAZ) 272.50p +6.45%African Barrick Gold (ABG) 116.80p +3.73%TalkTalk Telecom Group (TALK) 252.00p +3.66%Dialight (DIA) 1,185.00p +3.49%Ferrexpo (FXPO) 172.50p +3.05%Polymetal International (POLY) 640.50p +2.56%Mitchells & Butlers (MAB) 415.00p +2.47%BH Global Ltd. USD Shares (BHGU) 11.87 +2.33%Evraz (EVR) 105.40p +2.23%FTSE 250 - FallersImagination Technologies Group (IMG) 250.70p -11.35%Bumi (BUMI) 216.50p -8.65%Beazley (BEZ) 225.70p -7.00%Catlin Group Ltd. (CGL) 494.50p -3.89%Rightmove (RMV) 2,234.00p -3.00%Amlin (AML) 398.80p -2.94%IG Group Holdings (IGG) 582.00p -2.68%Lancashire Holdings (LRE) 791.50p -2.40%F&C Asset Management (FCAM) 96.70p -2.32%Chemring Group (CHG) 306.10p -2.20%BC