Spanish retail sales slumped in September

Spanish retail sales tumbled at their fastest pace since January 2004, as consumers cut spending hit by a hike in the value added tax. The National Institute of Statistics said on Monday that Spain's retail sales fell 10.9% from a year ago, compared with a 2% decline in August. The 27th consecutive drop in retail sales added to concerns that nation's recession is deepening, as the government resists asking for a sovereign bailout.

"It's clear there are no signs the crisis is abating," economist at Nomura Silvio Peruzzo said. "The headline (retail) figures show a sharp drop and indicate that domestic demand is not going to be anywhere near what the government is anticipating."

The Stoxx Europe 600 Index lost 0.39 per cent to 269.46. Germany's DAX Index erased 0.40 per cent to 7,203.16, while France's CAC 40 Index retreated 0.76 per cent to 3,408.89.