Volkswacht Bodensee - European stock markets drop on weak data

Germany's industrial output plunged in June, official figures showed, with the economy ministry warning of a gloomy outlook as high energy prices and interest rates continue to take their toll in Europe's biggest economy.

"Early economic data has done little to help lift the outlook for growth in Europe," said Joshua Mahony, chief market analyst at Scope Markets, adding that sentiment was hit also by weak UK housing numbers.

Average UK property prices fell 0.3 percent in July from June, major mortgage provider Halifax said, as homeowners struggle with surging interest rates.

Global stock markets saw volatile trading last week, with traders spooked by a range of issues including a US credit rating downgrade, rising Treasury yields and a lack of concrete measures to bolster Chinese growth.

While inflation continues to come down in the United States and parts of the economy are showing signs of slowing, there is plenty of speculation that the Federal Reserve will lift rates at least once more this year -- expectations that boosted the dollar Monday.

A much-anticipated US jobs report Friday showed fewer-than-forecast new posts were created last month, playing into the view that the central bank could stand pat.

But the cheer was offset by a still-strong reading on wage growth, which backed up the hawkish outlook for more tightening, with Bloomberg reporting that traders see a 40 percent chance of another hike this year.

In the medium term, however, they still see 1.25 percentage points of cuts by the end of 2024.

Investors will be keeping a close eye on fresh US inflation data this week as well as jobless claims figures, hoping for a better idea about the Fed's plans.

Wall Street's three main indices ended Friday in the red.

Elsewhere Monday, oil prices slid after a pre-weekend rally.

Oil giant Saudi Aramco meanwhile announced profits of $30.1 billion for the second quarter, a sharp fall from the same period last year when prices surged after major fossil fuel producer Russia invaded Ukraine.

- Key figures around 1045 GMT -

London - FTSE 100: DOWN 0.7 percent at 7,509.45 points

Frankfurt - DAX: DOWN 0.8 percent at 15,832.44

Paris - CAC 40: DOWN 0.6 percent at 7,271.56

EURO STOXX 50: DOWN 0.6 percent at 4,306.90

Tokyo - Nikkei 225: UP 0.2 percent at 32,254.56 (close)

Hong Kong - Hang Seng Index: FLAT at 19,537.92 (close)

Shanghai - Composite: DOWN 0.6 percent at 3,268.83 (close)

New York - Dow: DOWN 0.4 percent at 35,065.62 (close)

Euro/dollar: DOWN at $1.0971 from $1.1012 on Friday

Pound/dollar: DOWN at $1.2722 from $1.2748

Euro/pound: DOWN at 86.26 from 86.35 pence

Dollar/yen: UP at 142.37 yen from 141.77 yen

West Texas Intermediate: DOWN 1.1 percent at $81.92 per barrel

Brent North Sea crude: DOWN 1.0 percent at $85.34 per barrel

J.Bergmann--BTB