European shares drop sharply as weak China data hits markets

lunes 4 de enero de 2016 04:50 GYT

* FTSEurofirst 300 and Euro STOXX 50 fall more than 2 pct

* DAX down more than 3 pct, weak China data hits markets

* Fiat slumps after Ferrari spin-off

* Euro STOXX 50 Volatility Index rises

By Sudip Kar-Gupta

LONDON, Jan 4 (Reuters) - European shares fell sharply on Monday, the first trading day of 2016, as weak Chinese data weighed on world stock markets while a rebound in oil prices added to market volatility.

The pan-European FTSEurofirst 300 index fell 2.3 percent, its worst one-day drop since a 3.3 percent decline on Dec. 3.

The euro zone's blue-chip Euro STOXX 50 index also declined by 2.5 percent, while Germany's DAX slumped 3.4 percent.

China's factory activity contracted for the 10th straight month in December and at a sharper pace than in November, a private survey showed, dampening hopes that the world's second-largest economy would enter 2016 on a more stable footing.   Continuación...