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London - European stock markets dropped on Monday, extending last week's losing streak, as concerns about faltering global economic growth hit equities across the world.
The pan-European FTSEurofirst 300 index, which had already fallen for the last four sessions, was down by 0.6% at 1 285.31 points.
Germany's DAX also fell to a new one-year low as it declined 0.6%, while the eurozone's blue-chip Euro STOXX 50 index retreated 0.5% to 2 977.65 points.
European stock markets have been impacted by a raft of weak economic data, and on Friday credit rating agency Standard & Poor's lowered its outlook on France to "negative" from "stable".
On Monday, data showed that German wholesale prices had dropped 0.9% year-on-year in September, further highlighting the disinflationary pressures besetting the eurozone's economic bloc.
"We're still looking quite poorly on the markets. The nervousness is still there. I don't think anyone will want to come running back into the market early doors," said Terry Torrison, managing director at Monaco-based McLaren Securities.
Luxottica slumps
Italian eyewear group Luxottica lost around a tenth of its stock market value on Monday as its shares slumped after the company said its new chief executive, Enrico Cavatorta, was set to leave after just six weeks in the job.
US bank Citigroup downgraded Luxottica to "neutral" from "buy", citing corporate governance rifts at the company.
This month's pullback on European stock markets means the FTSEurofirst 300 is down by around 9% from a peak of 1 410.93 points reached in September, which marked its highest level since early 2008.
The DAX is also down by around 13% from a record high of 10 050.98 points set in June. The DAX is now down by around 9% since the start of 2014, while the FTSEurofirst is down by nearly 2.5%.
Some investors have speculated that the weak European data will put more pressure on the European Central Bank to launch new economic stimulus measures, such as quantitative easing (QE). But Hantec Markets analyst Richard Perry said he did not expect any QE until next year.
France and Italy will keep pressure on Germany this week to use government money to revive the eurozone's stagnating economy. But in a sign of inertia a promised list of projects to create growth will not be ready until December.
"I think QE will take place next year now, and for the time being, I don't really see any positive factors anywhere," said Perry.
European finance ministers take the argument to Luxembourg on Monday for two days of talks following last week's International Monetary Fund meetings in Washington, at which German Finance Minister Wolfgang Schaeuble ruled out "writing cheques" for the eurozone.
