European stocks fell sharply Monday, echoing weakness in the
U.S. and following a fresh bout of turmoil in Chinese markets.
The Stoxx Europe 600 was 1.5% lower in early trade, following
declines last week.
Markets took their cues from Wall Street, where the S&P 500
fell 1.1% on Friday, and a sharp fall in the Shanghai Composite
Index, which came as government buying of stocks slowed, analysts
said.
Germany's DAX fell 1.3%, France's CAC 40 was 1.4% lower, while
the U.K.'s FTSE 100 was down 0.5%.
Recent global stock declines have been spurred by some
disappointing economic data and some patchy corporate earnings.
Earnings were again in focus in Europe on Monday. Swiss bank UBS
AG declined despite second-quarter profit that exceeded forecasts.
Airline Ryanair Holdings PLC also fell after it didn't raise its
full-year profit guidance.
Consumer products giant Reckitt Benckiser Group PLC climbed
after reporting a rise in earnings.
Given relatively high valuations, equity markets "need better
earnings" to drive further gains, said Ian Williams, economist and
strategist at Peel Hunt.
In currency markets, the euro rose 0.9% against the dollar to
$1.1083.
Bond markets in Europe were steady, with Germany's 10-year yield
little-changed at 0.65%.
In commodities, Brent crude oil was marginally lower at $54.59 a
barrel. Gold rose 1.5% to $1,102.20 an ounce.
Write to Tommy Stubbington at tommy.stubbington@wsj.com
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