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European Shares Extend Slide On China Slump


European stocks fell on Monday after Chinese markets brushed aside central bank policy loosening and recorded their biggest single-day fall since February on concerns over an escalating trade war with the United States.

China's Shanghai Composite index fell as much as 3.72 percent to finish at 2,716.51 as traders returned to their desks after a week-long holiday.

Concerns surrounding Italy, rising bond yields and Brexit uncertainty also kept investors nervous.

The pan-European Stoxx Europe 600 index was down 0.6 percent at 374.12 in opening deals after falling 0.9 percent on Friday.

The German DAX, France's CAC 40 index and the U.K.'s FTSE 100 were down between 0.5 percent and 0.7 percent.

Banks paced declines, with Deutsche Bank, BNP Paribas, Credit Agricole, Societe Generale and Commerzbank losing 2-5 percent.

Hearing aid maker William Demant slumped 11 percent on worries about competition after the FDA approved a hearing aid from Bose.

Norsk Hydro jumped 4.5 percent. The Norwegian aluminum and renewable energy company said it was preparing to resume production at its alumina refinery in Brazil.

Total SA fell 1.3 percent in Paris after signing a new concession contract with Sonatrach and Alnaft to jointly develop the Erg Issouane gas field located on the TFT Sud permit.

In economic releases, German industrial output slid 0.3 percent in August from the previous month, confounding expectations for an increase of 0.5 percent, figures from Destatis showed. Production had decreased 1.3 percent in July.

On a yearly basis, industrial production logged a fall of 0.1 percent, in contrast to the expected growth of 0.1 percent and the 1.5 percent increase seen in July.

Eurozone investor confidence weakened in October largely due to uncertainties about the fiscal policy stance in Italy and the automobile industry in Germany, survey data from think tank Sentix showed.

The investor sentiment index fell more-than-expected to 11.4 from 12.0 in September. The expected reading was 11.8.

Separately, surveys released by Deloitte and the British Chambers of Commerce highlighted concerns among British businesses over Brexit.

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