LONDON: European equities sank on Monday as more disappointing Chinese data and downbeat analyst comment weighed on the mining sector, with London-listed Glencore hit the hardest.
In mid-afternoon deals, London's benchmark FTSE 100 index was down 1.93 percent at 5.990.91 points compared with Friday's close.
In the eurozone, Frankfurt's DAX 30 slid 1.67 percent to 9,527.17 points and the Paris CAC 40 shed 2.87 percent to 4,352.02.
In foreign exchange activity, the euro eased to $1.1160 from $1.1202 late on Friday in New York.
Europe's markets sank as data showed China's crucial industrial companies saw profits fall 8.8 percent in August -- hit by last month's shock yuan devaluation, weak demand and plunging share prices.
The result is the latest evidence of China's economic slowdown, after news last week that a gauge of factory activity in September had hit its lowest point in six-and-a-half years.
The "dire factory profit figure from China seems to have spooked investors," said Spreadex analyst Connor Campbell, saying the upshot was steep drops on Europe's three main stock exchanges, and further declines in previously depressed commodity prices.
In recent weeks and months, slowing growth in China has fuelled turmoil across world markets as the country is a key driver of the global economy.
US investors also got jitters from the Chinese data as Wall Street opened, with the Dow Jones Industrial Average down 0.81 percent to 16,181.61 points five minutes into trade.
The broad-based S&P 500 fell 0.87 percent to 1,914.48 points, while the tech-rich Nasdaq Composite Index dropped 0.91 percent to 4,643.96.
Despite the poor data from China, however, Shanghai staged a recovery after a morning sell-off, ending 0.27 percent higher on Monday. Elsewhere in Asia, Tokyo rose 1.32 and Sydney added 1.42 percent. Hong Kong, Seoul and Taipei were closed for public holidays.
- Glencore collapses -
The main victim in Monday's European slide was mining giant Glencore, whose share price collapsed by nearly a third in London after a dire broker warning.
Glencore shares nosedived 31.18 percent to 66.91 pence in early afternoon trades, after online brokerage Investec warned about the impact of low commodity prices on the group as China's economic slowdown weighs on demand for raw materials.
"The challenging environment for mining companies leads us to the question of how much value will be left for equity holders if commodity prices do not improve," Investec said in a research note to clients.
"If major commodity prices remain at current levels, our analysis implies that, in the absence of substantial restructuring, nearly all the equity value of both Glencore and Anglo American could evaporate."
Earlier this month, Glencore had raised $2.5 billion via a shares sale as part of its vast debt slashing plan.
In Monday afternoon deals in London, Anglo American stock dived 7.48 percent to 578.70 pence.
On the upside in London, shares in brewer SABMiller jumped 2.59 percent to 3,681 pence on reports that Belgian-Brazilian giant AB InBev was set to launch a formal takeover bid.
- Shell stops Alaska exploration -
Royal Dutch Shell meanwhile saw its "B" shares drop 1.48 percent to 1,534 pence after the Anglo-Dutch energy giant halted its exploration in Alaska.
The group began drilling there in July, two months after US President Barack Obama approved Arctic drilling, despite fervent opposition from environmentalists.
Shell, which is also slashing its headcount by 6,500 this year owing to sliding oil prices, described its decision to pull out of Alaska as "disappointing" and warned it would take a major financial hit.
Vodafone stock meanwhile slumped 3.7 percent to 209.60 pence after it abandoned talks about an exchange of assets with US pay-TV giant Liberty Global.
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