European shares hit 2-week low on China concerns
* Pan-European FTSEurofirst 300 down 2.1 pct
* China-exposed stocks among top decliners
* Valeo sinks despite guidance upgrade
By Atul Prakash and Lionel Laurent
LONDON, July 27 (Reuters) - European equities dropped to a two-week low on Monday and headed for their fifth straight daily decline as worries over China's growth prospects overshadowed some forecast-beating corporate results.
A slightly better-than-expected July reading from the German IFO business climate index helped ease some of the sell-off in early trading. But shares fell further following a weaker start on Wall Street on growth concerns in China and after Shanghai shares suffered their biggest one-day loss in eight years.
The FTSEurofirst 300 index was down 2.1 percent at 1,530.28 points by 1421 GMT after falling to 1,529.42, the lowest level in two weeks. It has fallen more than 5 percent in a week, but is still up 12 percent this year.
Sectors exposed to China - the world's biggest metals consumer and a big market for automobiles, luxury goods, oils and industrial goods - were the worst hit. The European autos , basic resources, energy and industrial goods sectors fell 1.0 to 2.5 percent.
"Investor sentiment is deteriorating because of signs of a slowdown in China. Other signals like German car exports to the country and China's electricity output are also disappointing," UniCredit strategist Christian Stocker said. Continuación...