1:00 PM Frankfurt – Markets across the Europe fell sharply after China reported lower than expected economic growth, industrial output and fixed asset investments. Resource sector and market indexes in London, Paris and Frankfurt fell at least 1%.
Shares in Europe fell, extending Friday losses, as Chinese economic growth came in slower than expected.
The Greece economy will start growing again next year,next batch of financial rescue likely.
In London, the FTSE 100 fell 1.16% or 73.82 at 6310.57. The DAX in Frankfurt fell 0.93% to 7672.37. In Paris, the CAC-40 declined 0.84% to 3697.83.
Stocks in commodities, mining and raw materials, which anchor Chinese growth, took a hit.
Greece’s economic recovery is expected to start in 2014, the European Commission, the European Central Bank and the International Monetary Fund jointly said Monday.
The troika said Greece will be able to manage its debts, currently at 160% of GDP but the International Monetary Fund wants the debt to cut to 120% of GDP.
Another batch of aid, 8.8 billion euros, is now expected to be released soon, the international lenders said.
Greece has received 270 billion euros in bailouts since 2010. The country was at center of the euro debt crisis, and has been forced to take crippling austerity measure to meet lenders requirements.
In France, government ministers are expected to reveal details of their individual wealth to curb corruption. The former Budget minister Jerome Cahuzac is facing fraud charges over a secret bank account.
In China, economic growth slowed down during the first quarter of 2013, missing expectations.
Annual growth was 7.7% in the period January to March, official data showed Monday, versus 7.9% three months earlier missing the forecast of 8%.
Other key numbers also underperformed expectations. In March, industrial output climbed 8.9% from a year ago, below the estimate of 10%.
China said fixed asset investment, an important variable for economic growth, rose at an annual rate of 20.9%, lower than growth expectations of over 21%.
China now wants to raise domestic demand to spur growth, diversifying from an over reliance on exports and investment spending.
Last year, China grew at its slowest in 13 years.