European markets start week in the red

London (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.

London's benchmark FTSE 100 index gave up 0.68 percent to end the day at 6,267.07 points, while in Paris the CAC 40 shed 1.04 percent to 3,991.24 points.

Frankfurt's DAX 30 index also fell 1.50 percent compared to Friday's close to 8,717.76 points.

The euro, meanwhile, edged up against the US dollar.

"The bounce at the tail-end of last week hasn't lasted the weekend with shares sold off again on Monday thanks to disappointing corporate earnings adding to a backdrop of global growth concerns," said CMC Markets UK analyst Jasper Lawler.

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.

Sentiment improved on news of rebounding US industrial production and a drop in weekly US jobless claims to a 14-year low.

But overall, European markets have been sliding since last month in sometimes extremely volatile trading thanks to an inflammation of angst over the recovery of the eurozone and a slowdown in growth elsewhere.

The FTSE 100 has shed nearly 9 percent since its peak at the beginning of September, while the CAC 40 and DAX 30 have both tumbled 11 percent.

"Economic fundamentals are now playing a bigger role and they are deteriorating in some major centres across the globe, including those of Germany and China," he said.

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.

The next glimpse at the eurozone will come with Purchasing Manager Indices released on Thursday.

Analyst Markus Huber at brokerage Peregrine & Black said that "the main topic remains economic growth concerns, especially within the eurozone".

- IBM hits Dow -

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 was trading mixed on Monday, with the Dow Jones Industrial Average pulled down by IBM shares, which plummeted after the tech giant reported disappointing earnings.

In midday trading, the Dow was down 0.20 percent to 16,347.40 points.

The broad-based S&P 500 rose 0.45 percent to 1,895.27 points, and the tech-rich Nasdaq Composite Index gained 0.66 percent to 4289.81 points.

IBM dived 6.8 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 Paris, shares in advertising group Havas climbed 1.4 percent to 5.79 euros after its main shareholder, French conglomerate Bollore, announced a takeover bid.

Shares in Bollore, however, fell by 11.5 percent to 335.15 euros.

In Lisbon, shares in Portugal Telecom plunged more than 27 percent at one point to strike a record low of 0.865 euros on doubts about prospects for its merger with Brazilian operator Oi.

The shares later recovered to end the day at 1.09 euros, a loss of 10 percent from Friday's closing price.

In foreign exchange on Monday, the euro firmed to $1.2781, compared with $1.2759 late in New York on Friday.

The European single currency eased to 79.22 British pence from 79.27 pence. The pound was worth $1.6131, up from $1.6091 on Thursday.

On the London Bullion Market, the price of gold rose to $1,244.50 an ounce from $1,234.25.