China data drags on European shares
European equities fell early today as weak Chinese manufacturing data reignited global growth concerns, hitting miners, while euro zone banks continued to trim recent gains on uncertainty about if and when Spain would apply for a bailout.
Basic resources shares dropped as data showed manufacturing output in China, the world's largest consumer of metals, dipped to its lowest level in 10 months.
Euro zone banks also weighed, shedding 1.2 per cent as Spain continues to hold off from applying for the bailout which would in turn allow the European Central Bank to intervene on the debt market to tame Spain's high borrowing costs.
"Activity in China is still weak and the Europeans are scared to death," a Brussels-based trader said. "The Spanish situation is nerve-wracking but I think Spain's problems are well known."
By 8.04am (Irish time), the pan-European FTSEurofirst 300 index was down 0.5 per cent at 1,111.02 points.