(MENAFN- AFP) European stock markets fell on Monday, making a downbeat start to the week as investors were spooked by shrinking manufacturing activity in France and Spain.
London's benchmark FTSE 100 index slid 0.71 percent to 6,603.03 points in midday deals, Frankfurt's DAX 30 shed 0.05 percent to 9,401.12 points and in Paris the CAC 40 reversed 0.34 percent to 4,280.71 compared with Friday's closing levels.
Madrid's IBEX 35 declined by 0.84 percent to 9,755.40 points.
Manufacturing activity in the 17-nation eurozone last month grew at its fastest pace since June 2011, according to a poll by data firm Market.
The monthly purchasing managers index -- based on a survey of 3,000 manufacturing firms in eight eurozone countries -- rose to 51.6 from 51.3 in October.
That was a higher outcome than the previous estimate issued last month. A reading above 50.0 indicates an expansion in activity.
However, the readings for France and Spain showed contraction in November.
"The Spanish manufacturing PMI ... fell heavily to 48.6 from 50.9," said Alpari analyst Craig Erlam.
"This number is likely to fluctuate a lot over the course of the next year though as the country moves towards a sustainable recovery.
"France is actually becoming the bigger concern, having failed to record a figure above 50, the number that separates growth from contraction, since July 2011," he added.
The data knocked investor confidence in Spain, and comes after official data showed last week that the nation's economy escaped a two-year recession with feeble 0.1-percent growth in the third quarter.
In foreign exchange activity, the European single currency fell to $1.3553 from $1.3587 late in New York on Friday. The dollar meanwhile rose to 102.74 yen from 102.40.
On the London Bullion Market, the price of gold dipped to $1,237.50 an ounce from $1,253 on Friday.
Asian equity markets mostly fell on Monday, with Tokyo hit by profit-taking, while Shanghai tumbled on expectations China will restart initial public offerings in the new year, raising fears of a share glut.
Investors seemed broadly unmoved by upbeat figures showing Chinese manufacturing continuing to expand in November.
Tokyo ended flat, edging down 6.80 points, to 15,655.07, a second successive loss after hitting a near six-year high on Thursday.
Shanghai lost 0.59 percent but but Hong Kong was up 0.66 percent.
There was little influence from Wall Street, which was closed on Thursday and half of Friday for the Thanksgiving holiday.
HSBC said Monday that its index of manufacturing activity in China came in above forecasts for November.
The banking giant said its China PMI sat at 50.8 last month, which while down from 50.9 in October is much better than the 50.4 initially estimated on November 21.
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