Europe open: Stocks edge lower as China data disappoints, growth concerns re-emerge

LONDON (ShareCast) - (ShareCast News) - European stocks edged lower in early trade following the release of disappointing Chinese data and as comments from International Monetary Fund head Christine Lagarde reignited growth concerns. At 0855 BST, the benchmark Stoxx Europe 600 index was down 0.1%, France's CAC 40 was 0.4% lower and Germany's DAX was down 0.3%.

Spain's IBEX 35 was up 0.5% after pro-independence parties won a clear majority in Catalonia's parliament in a regional election on Sunday.

"Investors returning to the market with a renewed sense of confidence have had their bubble burst once again as Chinese economic data continues to disappoint," said Mike McCudden, head of derivatives at Interactive Investor.

"Furthermore, as the IMF prepares to cut its global growth forecast, we could be set for more downside risk." Data released early on Monday by the National Statistics Bureau showed Chinese industrial profits fell 8.8% on the year in August compared with a 2.9% drop in July and marking the biggest drop since records began in 2011. For the first eight months of the year, profits were down an annual 1.9%.

Sentiment was also undermined by media reports that the International Monetary Fund is likely to downgrade its global economic growth estimates due to slower expansion in emerging economies. In an interview with Les Echos, IMF head Christine Lagarde said: ""A forecast of 3.3% growth this year is no longer realistic. A forecast of 3.8% for next year neither. We will however remain above the 3% threshold." On the corporate front, Vodafone shares slumped after it announced that it is no longer in discussions with Liberty Global (NasdaqGS: LBTYA - news) regarding a possible exchange of selected assets between the two companies.

Royal Dutch Shell (Xetra: R6C1.DE - news) slipped into the red after the company said it was stopping its offshore explorations in Alaska.

On the upside, though, brewer SABMiller (Xetra: BRW1.DE - news) rallied following weekend press reports that Anheuser-Busch InBev could bid around $106bn for the company within days.

Banks were in focus after the Swiss competition commission said it was probing UBS , HSBC , Deutsche Bank (Other OTC: DBAGF - news) , Julius Baer (LSE: 0QO6.L - news) , Barclays (Swiss: BARC.SW - news) , Morgan Stanley (Xetra: 885836 - news) and Mitsui over possible price fixing in the precious metals market.

Volkswagen (Other OTC: VLKAF - news) will likely remain in focus as the emissions scandal rumbles on, after the car maker announced on Friday that Matthias Mueller will be its new chief executive.

There are no major Eurozone data due but in the US, personal income and spending figures are at 1330 BST while pending home sales are at 1500 BST.