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European stocks halt slide

London - European stock markets recovered slightly on Monday following last week's sharp losses caused by fears the eurozone could fall back into recession.

London's benchmark FTSE 100 index grew 0.43% to stand at 6 366.96 points in late afternoon trading compared with Friday's closing level.

Frankfurt's DAX 30 gained 0.55% to 8 836.92 points and the CAC 40 in Paris won 0.31% to 4 086.50

Europe's main indices had fallen to the lowest levels this year in recent days before mounting a slight recovery.

Market power and regulation were highlighted Monday when French economist Jean Tirole was awarded the Nobel Economics Prize for his groundbreaking work on the power of large companies in key industries.

The euro jumped to $1.2687 from $1.2627 late on Friday in New York, while global oil prices came under further pressure from weakening demand growth for crude against a backdrop of a solid supply situation.

However, the European single currency on Monday hit a near 11-month low against Japan's currency, at 135.55 yen, before returning above the 136 mark.

"October continues to live up to its name as the most volatile trading month of the year, as markets remain highly nervous," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor.

Volatility was seen in the Milan market Monday, down 0.22%, as shares of Italian eyeglass manufacturer Luxottica, maker of the Ray Ban and Oakley brands, plunged 8.14% in mid-afternoon deals, after announcing that its new boss Enrico Cavatorta was resigning after less than a month.

And indications that semiconductor demand has slowed, especially from China, hit the shares of French-Italian manufacturer STMicroelectronics, which was down 4.23% in afternoon trading in Paris.

European markets were also supported by Wall Street opening higher on Monday, which rose after better-than-expected Chinese trade data as the market awaited a heavy week of earnings.

Five minutes into trade, the Dow Jones Industrial Average was up 0.07% at 16 555.15 points. The broad-based S&P 500 rose 0.10% to 1 908.12, while the tech-rich Nasdaq Composite Index advanced 0.18% to 4 283.83.

Shares in Fiat Chrysler Automobiles on Monday moved higher in its first day of trade on the New York Stock Exchange after shifting its main listing from Milan.

The auto giant, formed by the acquisition of US automaker Chrysler by Italy's Fiat, stood at $9.23 at 13:40 GMT, 3.7% above the close on Friday, when it traded as an American depositary share.

France, Finland rocked

World markets have caught a chill in recent weeks as traders worry about the state of the global economy, with China, the eurozone and Japan struggling even though the United States is clawing its way back to health.

Europe's outlook more of a beating on Friday when Standard and Poor's after the close of trading kept its 'AA' rating for France but lowered its outlook from "stable" to "negative" over the country's budget situation.

S&P estimated France's budget deficit will reach 4.1% of gross domestic product for the period of 2014-2017, up from its April forecast of 3.1%.

Standard and Poor's also stripped Finland of its top triple-A rating on Friday, cutting it by one notch to 'AA+', due to dimmed economic growth prospects in the eurozone nation.

"If things weren't bad enough already as European markets, led by the German DAX, dropped more last week than they did in the previous quarter, then ratings agency Standard and Poor's pretty much put the cherry on the cake," said Michael Hewson, chief market analyst at traders CMC Markets UK.

Asian stock markets suffered fresh selling pressure on Monday despite the encouraging Chinese trade data.

Shanghai ended down 0.36% while Hong Kong rose 0.24%.

Sydney gave up 0.63% and Seoul ended 0.71% lower.

Tokyo was closed for a public holiday.

On Monday, the British pound was worth $1.6087, up from $1.6070 on Friday.

The euro climbed to 78.87 British pence from 78.51 pence on Friday.

The price of gold grew to $1 228 an ounce on the London Bullion Market from $1 219 on Friday.

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