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14.10.201504:08:41UTC+00European shares slump on China deflation

European stocks trailed the losses of Asian stocks following Chinese factory gate prices matched their biggest plunge since the global financial crisis.

The Stoxx Europe 600 Index lost 0.9% in London, with automakers and materials producers headlining declines, as bets of additional government stimulus measures failed to bolster Chinese shares.

The MSCI Asia Pacific Index fell 0.4% to 132.35. Japan's Topix index dropped 2.2%. The Hang Seng China Enterprises Index slipped 1%, the Hang Seng Index dropped back 0.8%, and the Shanghai Composite Index lost 0.9%.

Meanwhile, German bunds surged, with the yield on 10-year notes sliding three basis points to 0.56%.

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