European shares set to fall

European stocks were set to fall on Monday, hit by worries over the pace of global growth after data showed Japan, the world's third-largest economy, slipped into recession. At 0722 GMT, futures for Euro STOXX 50, for Germany's DAX and for France's CAC were down 0.7-0.8 per cent. Japan's gross domestic product (GDP) fell at an annualised rate of 1.6 per cent in July-September after dropping 7.3 per cent in the second quarter following a rise in the national sales tax, which clobbered consumer spending. The country's economy had been expected to rebound by 2.1 per cent in the third quarter, but consumption and exports remained weak, saddling companies with huge inventories to work off. Tokyo's Nikkei index tumbled 3 per cent on Monday, suffering its biggest one-day slump since August. Energy stocks will also be in the spotlight as Brent crude fell 1.2 per cent to below $79 a barrel following Japan's data, according to Reuters.