European stocks drop sharply on global growth concerns; Dax down 2.39%

Investing.com - Investing.com - European stocks were sharply lower on Monday, as Friday's downbeat factory data from China continued to weigh broadly on global equity markets.
During European morning trade, the EURO STOXX 50 plummeted 2.40%, France's CAC 40 tumbled 2.36%, while Germany's DAX 30 lost 2.39%.
Data on Friday showed that manufacturing activity in China contracted at the fastest rate in six-and-a-half years in August, exacerbating fears over a slowdown in the world's second-largest economy.
The preliminary reading of the Caixin China manufacturing purchasing managers' index came in at 47.1, down from July's final reading of 47.8.
It was the weakest level since March 2009 and was well below the 50 level separating expansion from contraction.
The weak data underlined fears over the outlook for global growth.
Financial markets have been roiled since China devalued the yuan on August 11, sparking a selloff in equities, commodities and emerging-market assets.
Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) plummeted 2.64% and 2.46%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) lost 2.56% and 1.68%.
Deutsche Bank was in the spotlight on Friday following reports the bank's internal probe into possible money laundering at its Russian unit has led to an investigation into whether a senior employee took bribes.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) plunged 2.97% and 3.35% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) tumbled 2.91% and 2.97%.
In London, FTSE 100 plummeted 2.42%, as U.K. lenders tracked their European counterparts sharply lower.
Shares in HSBC Holdings (LONDON:HSBA) lost 1.82% and Barclays (LONDON:BARC) plunged 2.65%, while the Royal Bank of Scotland (LONDON:RBS) and Lloyds Banking (LONDON:LLOY) tumbled 2.65% and 1.33% respectively.
Mining stocks were broadly lower on the commodity-heavy index. Rio Tinto (LONDON:RIO) and Bhp Billiton (LONDON:BLT) dove 4.45% and 5.26% respectively, while Glencore (LONDON:GLEN) sank 5.49%.
Adding to losses, outsourcing company Bunzl (LONDON:BNZL) saw shares decline 3.75% after reporting a 5% increase in first half revenue.
In the U.S., equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a 2.30% dive, S&P 500 futures signaled a 2.13% loss, while the Nasdaq 100 futures indicated a 3.38% plunge.