Monday 12:35 BST. European bourses have started the week with heavy falls as lingering eurozone concerns and worries about global growth continue to suppress sentiment. The FTSE All-World equity index is down 0.8 per cent following a soft showing out of Asia and as the FTSE Eurofirst 300 loses 2 per cent, with financials in swift retreat on sovereign debt exposure stress. Spain's Ibex 35 index is down 2.9 per cent, and sits only half a percentage point above its lowest close in more than nine years. S&P 500 futures point to Wall Street slumping 0.9 per cent at the opening bell. Growth-focused assets are under the cosh, giving a lift to their opposite numbers in the "risk-on/risk-off" strategy. The dollar index is up 0.4 per cent, while US and German 10-year yields ease 4 basis points to 1.92 per cent and 7bp to 1.65 per cent respectively. That leaves German yields at record lows and highlights one of the main issues still affecting 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 144bp, a three-month high. Although they have had a long time to prepare for a likely Hollande presidency, some investors are wary that his victory could reduce co-operation between Germany and France as they tackle the bloc's sovereign debt problems. Adding to the political angst is news that the Dutch coalition government collapsed at the weekend, highlighting the resistance in many countries to Brussels dictating budgetary constraints. Dutch bonds are seeing sellers, pushing benchmark 10-year yields up 8bp to 2.40 per cent and stretching the spread with Bunds to a three-year high of 72bp. The euro is trading at $1.3131 compared with Friday's close of $1.3221. Indeed, the euro took another leg lower after a survey of German manufacturing shrank more than expected. This focused traders" minds on the other main issue weighing on markets: the waning health of the global economy. A report that showed China's manufacturing sector stabilising in April may have helped ease concerns that the world's second-biggest economy is facing a hard landing. But the reading of 49.1, compared with 48.3 in March, for the factory activity index still indicates that the sector contracted for a sixth consecutive month, and that, when coupled with recent soft US and European data, makes uncomfortable viewing for the bulls. The news from China and the general sour tone are putting pressure on commodities, with copper down 1.6 per cent to $3.64 a pound and Brent crude off 0.7 per cent to $117.88 a barrel. Not even news of some chunky M&A activity is helping the mood so far in the session. 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 0.6 per cent, Hong Kong's Hang Seng index fell 1.8 per cent and the Shanghai Composite was off 0.8 per cent. In Seoul the Kospi index lost 0.1 per cent as carmakers and shipbuilders took a breather after their recent gains, while technology plays provided support. 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 Bank of Japan would extend the maturity of the bonds it buys, according to Reuters.