European shares down sharply on disappointing Chinese data
* Pan-European index drops 2.5 pct on first day of 2016
* Germany's DAX down 4.3 as weak China data hits markets
* Ferrari outperforms car sector on Milan debut
* Euro STOXX 50 Volatility Index rises (Adds closing prices)
By Sudip Kar-Gupta and Danilo Masoni
LONDON/MILAN, Jan 4 (Reuters) - European shares fell sharply on Monday, the first trading day of 2016, as weak Chinese data weighed on world stock markets.
The pan-European FTSEurofirst 300 index lost 2.5 percent, its biggest one-day drop since a 3.3 percent fall on Dec. 3, while the euro zone's Euro STOXX 50 index fell 3.1 percent and Germany's DAX slumped 4.3 percent.
China's factory activity contracted for the 10th straight month in December and the decline accelerated compared with November, a private survey showed.
China's benchmark CSI300 share index tumbling 7 percent on Monday, prompting the stock exchange to halt trading for the rest of the day. Continuación...