- Kerry arrives in Iraq to tackle crisis
- Eurozone manufacturing activity falls
- Chinese factory PMI expands
FTSE 100: -0.29%
CAC 40: -0.36%
FTSE MIB: -1.12%
IBEX 35: -0.12%
Stoxx 600: -0.32%
European stocks slid as investors weighed the Iraq crisis and survey results which showed a fall in Eurozone manufacturing activity.
Rebels of the Islamic State in Iraq and the Levant (ISIS) took over two key crossings in Anbar on Sunday, a day after seizing one at Qaim, a town in the province that borders Syria.
US Secretary of State John Kerry has arrived in Baghdad to find a way to stop the insurgents after warning that the "ideology of violence and repression is a threat not only to Iraq but to the entire region".
Oil prices have climbed on the Iraq crisis on fears of disruption to supplies.
Brent crude futures were rising $0.070 to $114.890 per barrel at 11:41 BST, according to the ICE.
In the Eurozone, Markit's purchasing managers' index (PMI) for manufacturing declined to 51.9 from 53.4, missing expectations for a smaller drop to 52.2. However, it remained above the 50 level that indicates expansion.
In parallel, the services PMI activity index fell to 52.8 from the prior month's 53.2. Economists had forecast a slight upturn to 53.3.
The composite output index dropped from 53.5 to 52.8, missing the consensus estimate for no change.
In China, the PMI jumped to 50.8 in June from May's final reading of 49.4, beating analysts' predictions of 49.7.
A separate PMI manufacturing report on in the US later today is forecast to fall to 56 in June from 56.4 in May.
Elsewhere in the US, a National Association of Realtors report may show that previously owned home purchases increased to a 4.74m annualised rate in May, according to economists, after rising to a 4.65m rate the previous month.
Airline and travel stocks hit by Iraq
A gauge of airlines and travel stocks, including easyJet, TUI Travel and International Consolidated Airlines (IAG), have fallen amid the Iraq crisis as higher oil prices
are expected to filter down. IAG's stock also took a hit from news of labour strikes at its British Airways unit.
BNP Paribas retreated following reports France's biggest lender is close to an agreement to plead guilty to settle US sanctions allegations.
Asos declined as the UK's largest online-only fashion retailer stopped taking orders on its website after it was suspended following a fire at its main warehouse in northern England.
Alstom rallied after saying Bouygues SA will sell as much as 20% of the firm to the French state.
Distribuidora Internacional de Alimentacion edged higher after the Spanish discount grocer said it would sell its French business to Carrefour.
The euro fell 0.14% to $1.3581.