European shares slide after weak China data
European shares tumbled in early trade – retreating for the seventh time in eight sessions, after tepid Chinese macro data raised concerns about the global recovery.
The FTSEurofirst 300 index of top European shares was down 1.2 percent at 981.94 points, while Euro STOXX 50, the euro zone’s blue chip index, fell 1.5 percent at 2,535.96 points.
Data showed the pace of Chinese manufacturing growth slowed in June as government steps to cool the property market and curb bank lending.
“Asian growth has been the engine of the world economy so it doesn’t bode well if China is losing steam. The market had doubts about the global economy, and these numbers are confirming the doubts,” said Jacques Henry, analyst at Louis Capital Markets, in Paris.
Mining shares fell along with metal prices, with Xstrata down 1.4 per cent and BHP Billiton down 0.9 per cent.
Spanish stocks were also under pressure, with the IBEX down 2.2 per cent ahead of Spain’s auction for five-year bonds due later in the day.