Europe open: Rally ends after China data hits miners, commodities

The rally in European shares ended on Monday after Chinese data revealed a slowdown in factory output and retail sales growth.

The pan-European STOXX 600 index fell 0.37% in early trading, easing from record highs last week.

Chinese industrial production rose 6.4% on the year following an 8.3% increase in June, coming in below consensus expectations of 7.% growth.

Retail sales grew 8.5%, down from 12.1% growth in June and undershooting expectations for a 10.9% jump.

The news hit oil and mining stocks as commodity prices weakened on fears of faltering demand in the world’s major consumer of metals and oil. New Covid-19 outbreaks and floods disrupted business operations.

In equity news, French car parts supplier Faurecia topped the Stoxx after it agreed to acquire a majority stake in German automotive lighting group Hella, trumping rival bidders with a €6.7bn deal.

Hella, whose shares hit a record high last week on anticipation of a deal, slipped 1.9%.

Lufthansa fell 4.1% after a German finance agency said it plans to sell up to a quarter of its 20% stake in the airline over the next few weeks.

Shares in publisher Future gained after the group said it had bought consumer media company Dennis for around £300m in cash from Exponent Private Equity.