European stocks fell after Chinese data raised fears of deflation

European stocks fell on Monday, after recording big weekly losses, as below-expected inflation data in China stoked fears of weak demand, while investors awaited US inflation data as well as corporate earnings due later this week.

The pan-European STOXX 600 index fell 0.3 percent in early trading, with China-linked miners and automakers leading the losses.

Asian markets fell after data showed that producer prices in China fell at the fastest rate in seven and a half years in June, while consumer price inflation recorded its slowest level since 2021.

The benchmark STOXX 600 recorded its worst weekly performance in nearly four months on Friday after hawkish signals from central bank policymakers and data showing the resilience of the US economy added to fears that interest rates would remain high for longer.

Bayer rose 2.5 percent after a report said the German drug and pesticide giant could spin off and list its crop science unit.

Kering fell 0.3 percent after the Financial Times reported that the company that owns the Gucci brand paid 3.5 billion euros ($3.83 billion) to buy French luxury perfume company Creed in June.