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Morning MoneyBeat Europe: Stocks Slump In China's Wake

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European stocks fell sharply Monday, echoing weakness in the U.S. and following a fresh bout of turmoil in Chinese markets.

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.

Recent global stock declines have been spurred by some disappointing economic data and some patchy corporate earnings.

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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.

Read our full take on the European markets today here.

-- Tommy Stubbington

Market Snapshot: At 7.35 a.m. GMT, FTSE 100 down 0.28%, CAC 40 down 1.24% and DAX down 1.17%. Nikkei finished Monday down 1.0%. Brent crude down 0.22% at $54.50. Gold up 1.69% at $1104.30. EUR/USD up at $1.1069. Ten-year Treasury yield down at 2.25%, Bund yield flat at 0.64%, Gilt yield lower at 1.94%.

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From The Wall Street Journal

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