- UK industrial and factory output data due
- Chinese inflation rises more than forecast

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European stocks slumped as investors awaited reports on UK manufacturing and industrial production and weighed Chinese inflation data.

UK industrial output may have risen by 2.8% year-on-year in April following a 2.3% increase a month earlier, according to the consensus estimate.

Manufacturing production in the UK is forecast to jump 4% year-on-year in April after a 3.3% gain in March.

In China, inflation rose by 2.5% in May year-on-year following a 1.8% increase a month earlier. Analysts had predicted a 2.4% gain. However, it remains well below the 3.5% target set out by the Chinese government.

"With governments the world over worrying about falling prices and the threat of deflation, today's number represents a somewhat 'sweet spot' for China, allaying fears of a disinflationary environment but also remaining low enough to allow for future stimulus measures," according to Alpari UK Analyst Joshua Mahony.

The data comes a day after the People's Bank of China decided to cut the reserve requirement ratio by 50 basis points for some select banks, which will take effect on June 16th.

Bank of Ireland, Imperial Tobacco

Bank of Ireland declined after US billionaire Wilbur Ross decide to sell his remaining share in the lender.

Imperial Tobacco Group advanced on news the firm plans to sell shares of its Logista unit on the Spanish stock exchange in an initial public offering that values the European logistics business at an estimated $2.5bn.

The euro was unchanged at $1.3594.

Brent crude futures rose $0.055 to $110.050 per barrel, according to the ICE.

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