European stocks down after Chinese data raised fears of ‎deflation

European stocks fell today, Monday, after recording large weekly losses, as below-expected inflation data in China fueled fears of weak demand, while investors awaited US inflation data, as well as corporate earnings to be announced later this week.

According to “Reuters”, the European Stoxx 600 index fell 0.3 percent in early trading, and mining companies and the automobile industry linked to China led the losses.

Asian markets fell after data showed that producer prices in China fell at the fastest rate in seven and a half years in June, while consumer price inflation recorded its slowest level since 2021.

The Stoxx 600 index recorded its worst weekly performance in nearly four months on Friday, after hawkish signals from central bank policymakers and data showing the resilience of the US economy increased fears that interest rates will remain high for a longer period.

Bayer shares rose 2.5 percent after a report said that the German drug and pesticide giant could spin off and list its crop science unit on the stock exchange.

Kering fell 0.3 percent after the Financial Times reported that the company that owns the Gucci brand paid 3.5 billion euros ($3.83 billion) to buy French luxury perfume company Creed in June.