Shares weaken as growth fears linger Monday 08:05 BST. European bourses have started the week on the back foot as lingering eurozone concerns and worries about global growth continue to suppress sentiment. The FTSE All-World equity index is down 0.4 per cent following a soft showing out of Asia and as the FTSE Eurofirst 300 loses 1.1 per cent. S&P 500 futures point to Wall Street retreating 0.4 per cent at the opening bell. Growth-focused assets are struggling, giving a lift to their opposite numbers in the "risk-on/risk-off" strategy. The dollar index is up 0.3 per cent, while US and German 10-year yields ease 1 basis point to 1.96 per cent and 4bp to 1.68 per cent respectively. That leaves German yields only a few basis points above record lows and highlights one of the main issues still impacting investors: Bunds are attracting "haven" flows as fretting about the fiscal position of other eurozone members festers. Spanish benchmark yields are hovering at 6 per cent, while the possible election to the French presidency of Socialist candidate François Hollande coincides with the yield spread between French and German debt expanding to 144 basis points, a three-month high. The euro is trading at $1.3178 compared with Friday's close of $1.3221. The single currency has thus slipped back into the tight $1.30-$1.32 range from which it has been struggling to break free decisively for nearly three weeks. The other main issue weighing on markets is the global economy. A report that showed China's manufacturing sector stabilising in April has helped ease concerns that the world's second biggest economy is facing a hard landing. But a reading of 49.1 compared with 48.3 in March for the factory activity index still indicates that the sector contracted for the sixth consecutive month, and when coupled with recent soft US data it makes uncomfortable viewing for the bulls. The news from China and the general sour tone is thus putting pressure on commodities, with copper down 1.2 per cent to $3.65 a pound. Investors are also perhaps wary because they await a string of key events later in the week, including the Bank of Japan's policy board meeting and the Federal Open Market Committee meeting in the US. "There are plenty of data and events this week including central banks in the US, Japan and New Zealand that will capture attention," Crédit Agricole said in a note to clients. Political events in France and bond auctions in the eurozone will also provide direction. We continue to see risk aversion creeping higher against this background, which in turn will keep risk assets on the backfoot," it added. Earlier, Asian investors were disappointed by the weak China data while corporate earnings were a depressing factor in some markets. The FTSE Asia Pacific index slipped 0.3 per cent, Hong Kong's Hang Seng index is down 1 per cent and the Shanghai Composite is off 0.7 per cent. In Seoul, the Kospi index lost 0.1 per cent as automakers and shipbuilders took a breather after their recent gains, while technology plays provided some support. Construction companies were under pressure after Daewoo Engineering & Construction reported a 38 per cent drop in first-quarter operating profit. In Tokyo, the Nikkei 225 reversed early gains to lose 0.2 per cent. Traders cited a move to sell equity futures and purchase medium-term sovereign debt following a report that the BoJ would extend the maturity of bonds it buys, according to Reuters. In Sydney, Biota Holdings fell after the drugmaker agreed to buy US firm Nabi Biopharmaceuticals. If the deal wins regulatory approval, the company will be delisted from the ASX with the new company listed on Nasdaq. Sydney's S&P/ASX 200 index lost 0.3 per cent.