Europe open: Stocks slip as investors digest China data

At 0845 BST, the benchmark Stoxx Europe 600 index was down 0.7%, Germany’s DAX was 0.3% lower and France’s CAC 40 was off 0.4%.

At the same time, oil prices retreated before the release of weekly US crude inventory data later in the day and as investors became cautious ahead of Thursday’s OPEC meeting. West Texas Intermediate was down 0.9% to $48.66 a barrel while Brent crude was 0.9% weaker at $49.42.

“June brings some of the most critical market events of the year. The Federal Reserve decision on 15th June is potentially a key risk for global markets, followed by the EU referendum vote on the 23rd, which has huge ramifications for the UK and Europe,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor.

“With uncertainty about both the Fed and EU referendum increasing and oil prices falling for a fourth day, investors have become more cautious, with European equity markets weaker as investors struggle to find reasons to invest.”

China's official manufacturing purchasing managers' index printed at 50.1 in May, unchanged from the previous month.

Meanwhile, the Caixin manufacturing PMI remained below the 50.0 that separates contraction from expansion for the 15th straight month, dropping to 49.2 in May from 49.4 in April.

China's official non-manufacturing PMI fell to 53.1 in May from 53.5 in April, according to the National Bureau of Statistics said.

In corporate news, Elekta shares slid after the Swedish care company reported weaker-than-expected first-quarter earnings.

RSA Insurance edged lower after announcing the completion of the sale of its operations in Mexico.

FTSE 100 building materials supplier Wolseley was under the cosh after it said in a third quarter trading update that recent revenue growth trends have been weaker.

Still to come on the data front, Eurozone manufacturing PMI is at 0900 BST. In the US, ISM manufacturing and construction spending figures are at 1500 BST.