(MENAFN- AFP) Europe's main stock markets sank Monday, making a negative start to the week as investors took profits and reacted to poor German economic data, dealers said.
London's benchmark FTSE 100 index reversed 0.19 percent to 6,853.16 points in late morning deals.
The Paris CAC 40 slid 0.33 percent to 4,454.23 points and Frankfurt's DAX 30 lost 0.15 percent to 9,994.28 compared with Friday's close.
In foreign exchange trade, the pound hit a 2012 peak against the euro on the prospect of rising British interest rates early next year.
"European shares are starting out the new trading week on a slightly negative note, as a combination of moderate profit-taking, lack of fresh impulses and somewhat disappointing German industrial production numbers putting pressure on stocks," said Markus Huber at broker Peregrine & Black.
Trading volumes were subdued with US financial markets due to reopen following a long three-day holiday weekend to celebrate Independence Day.
"However, today's session is likely to be rather subdued in terms of trading volume, as there are very few economy data out scheduled for release and traders in the US (are) returning from a long 4th July weekend."
European equities had risen last week, with Germany's DAX hitting a new record on unexpectedly strong US jobs data and after the European Central Bank kept its ultra-loose monetary policy in place.
- German data disappoints -
However, weak official data showed on Monday that German industrial production contracted in May, hit by the number of public holidays.
According to regular data compiled by the economy ministry, industrial output decreased by 1.8 percent in May, after slipping by 0.3 percent in April.
Activity was hit by the number of public holidays and bridging days, the ministry explained.
"Data ... has disappointed markets with German industrial output falling 1.8 percent between April and May, significantly below market expectations of no change.
"This reading from Germany is in line with the poor data reports out of the European powerhouse in recent weeks in areas such as unemployment data, business sentiment and factory orders."
In company news on Monday, stock exchange operator Deutsche Boerse was the top faller in Frankfurt after receiving a broker downgrade from Credit Suisse.
The group's share price slid 2.36 percent to 55.32 euros.
In London, SABMiller's shares dropped 0.60 to 3,377 pence, despite news of a potential disposal.
The Britain-based brewer announced that it will seek to sell its $1.09-billion (800-million-euro) stake in South African leisure division Tsogo Sun.
SABMiller, which is listed in London and Johannesburg, said in a statement that after a strategic review it will dispose of its 39.6-percent stake in Tsogo Sun via a share placing and buyback.
- Euro slides against pound -
The European single currency sank to 79.15 British pence, a level last seen in September 2012. In later morning deals, the single currency stood at 79.31 pence, up from 79.22 pence on Friday.
The pound meanwhile declined to $1.7144, down from $1.7160 late on Friday, when it had struck a six-year high point.
Elsewhere, the euro firmed to $1.3597 from $1.3595 late on Friday in New York.
On the London Bullion Market, the price of gold weakened to $1,313.32 an ounce from $1,319.25 on Friday.
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