European markets fall as China woes overshadow Q2 earnings

LONDON, July 27 (Reuters) - European equities started the week on a downbeat note, heading for their fifth straight daily fall, with worries over China's growth prospects overshadowing some forecast-beating corporate results.

The FTSEurofirst 300 index was down 1.4 percent at 0722 GMT, with benchmark indexes in Paris and Frankfurt broadly in line. UK stocks outperformed slightly, with the battered mining sector staging a rebound after a volatile week despite metals prices languishing near multi-year lows.

"Most of the fall is coming from China...European markets are getting hit," said Markus Huber, trader at brokerage Peregrine & Black.

"I think a lot of people have the view that China is going to continue to slow down and that slowdown is not really priced into European markets at the moment."

Shares (Berlin: DI6.BE - news) of UBS (NYSEArca: FBGX - news) fell 1.7 percent despite a set of forecast-beating profits, while Valeo (Paris: FR0000130338 - news) also fell despite lifting guidance. Reckitt Benckiser (Xetra: A0M1W6 - news) gained 1.7 percent after raising annual revenue and margin targets. (Reporting by Lionel Laurent)