Europe open: Equities fall as investors digest more disappointing Chinese data

European stocks fell in early trade, taking their cue from downbeat sessions in the US and Asia amid ongoing concerns about the health of the Chinese economy.

At 0900 BST, the benchmark Stoxx Europe 600 index was down 1%, Germany’s DAX was down 1.1% and France’s CAC 40 was 1.2% weaker.

Data released on Wednesday showed China’s mainland consumer price index rose 1.6% in September from a year earlier, missing expectations of a 1.8% increase.

This came a day after figures revealed that dollar-denominated exports in China dropped 3.7% in September from a year earlier, while imports fell 20.4%, marking their eleventh consecutive month of decline. Exports were better than expected but imports were weaker, raising doubts over domestic demand and compounding fears of a slowdown.

“Investors are apprehensive about the sluggish growth in China and the recent data released this week has added negative sentiment for the European trading session,” said Naeem Aslam, chief market analyst at Ava Trade.

On the corporate front, semiconductor equipment maker ASML Holding tumbled after the company said it projects sequentially lower sales in the fourth quarter. In addition, its third-quarter earnings fell a little short of analysts’ expectations.

Luxury goods retailers LVMH and Burberry, both of which have a high exposure to China, were under pressure.

Brewer Diageo slipped after saying it has agreed to sell two of its wine business, including brands such as Blossom Hill and Yellow Tail, for $552m to US-based Treasury Wine Estates as it continues to sell off non-core assets.

On the upside, though, London-listed fund manager Hargreaves Lansdown rallied as investors welcomed its third-quarter update.

Outsourcing group Capita nudged higher after it said the board of peer Xchanging has recommended its 160p per share offer, which values the company at around £412m.

In terms of sectors, basic resources were on the back foot, with the Stoxx 600 index down 1.3% on the back of worries about a slowdown in China, which is a huge consumer of metals.

Still to come on the data front, Eurozone industrial production is released at 1000 BST. In the US, PPI and retail sales are on tap at 1330 BST while business inventories are published at 1500 BST.