(MENAFN- AFP) European stock markets moved lower on Monday as traders took profits and eyed global economic worries on the eve of crucial Chinese growth figures, dealers said.
In afternoon trading, London's benchmark FTSE 100 index of top companies shed 0.98 percent compared with Friday's closing level to 6,248.48 points.
Frankfurt's DAX 30 index dropped 1.70 percent to 8,699.95 points and the CAC 40 in Paris reversed 1.16 percent to 3,986.44.
The euro, meanwhile, edged higher against the US dollar.
"It looks like the volatility in equity markets may not yet be over," said analyst James Hughes at trading firm Alpari.
"US and European markets staged an impressive comeback on Friday, managing to help lead a recovery to the correction.
"However, we cannot yet rest easy and get back into the long-term buying trend, with a whole host of economic data due for release this week."
Investors are expected pay particularly close attention to third-quarter gross domestic product (GDP) data from the world's number two economy, China, on Tuesday.
- Sharp falls 'overdone' -
Markets were rocked by near panic last week as traders worried over the economic outlook in China and the United States, while the eurozone faced fears of a possible recession.
European equities had rebounded on Friday as investors snapped up bargains, ending a roller-coaster week marked by alarm over global growth, a reemergence of eurozone tensions and the spreading Ebola virus.
The global selloff was sparked on Tuesday by official data showing US retail sales and producer prices both fell in September.
However, sentiment improved on Thursday on news of rebounding US industrial production and a drop in weekly US jobless claims to a 14-year low.
In Athens, the main Athex index, which had fallen heavily last week, was up 1.5 percent, and the yield on Greek 10-year bonds continued to ease, to 7.996 percent.
Analyst Markus Huber at brokerage Peregrine & Black said that "the main topic remains economic growth concerns especially within the eurozone".
He added, however, that "many consider last week's sharp market reaction to mediocre US economic data somewhat overdone".
In Paris on Monday, the biggest faller was French digital security company Gemalto. Its share price dived 7.5 percent to 54.71 euros on the back of negative broker comment.
On the upside, advertising group Havas jumped 4.8 percent to 5.98 euros after its main shareholder, French conglomerate Bollore, announced a takeover bid.
Shares in Bollore however fell by 9.2 percent to 344.10 euros.
In Lisbon, shares in Portugal Telecom plunged more than 20 percent at one point to strike a record low of 0.96 euros on doubts about prospects for its merger with Brazilian operator Oi.
The shares later recovered to stand at 1.03 euros in afternoon trading, a loss of 15.2 percent from Friday's closing price.
- Asia, US stocks rally -
Asian stocks rallied on Monday following a rise in New York at the end of last week, with Tokyo surging thanks also to a weaker yen which boosts exporters.
Tokyo stocks, which ended last week at a five-month low, raced 3.98 percent higher in the biggest one-day points gain since June 2013, adding 578.72 points to finish at 15,111.23.
Wall Street opened lower on Monday, however, pushed down as IBM shares plummeted after the tech giant reporting disappointing earnings.
The Dow Jones Industrial Average, of which IBM is a component, slid 0.63 percent in the first five minutes of trading to 16,277.78 points.
The broad-based S&P 500 slipped 0.10 percent to 1,884.81 points, while the tech-rich Nasdaq Composite Index dipped 0.05 percent to 3,814.03 points.
IBM dived 7.2 percent after it reported just $18 million in third-quarter earnings, down from $4.0 billion last year, due to a $4.7 billion charge related to offloading its micro-chip business.
In foreign exchange on Monday, the euro firmed to $1.2766, compared with $1.2759 late in New York on Friday.
The European single currency eased to 79.11 British pence from 79.27 pence. The pound was worth $1.6141, up from $1.6091 on Thursday.
On the London Bullion Market, the price of gold rose to $1,241 an ounce from $1,234.25.
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