European stocks fell early on Monday as downbeat readings of euro zone business activity revived worries over the pace of the economic recovery in the single currency bloc, Reuters reported. Data compiler Markit said its composite purchasing managers index (PMI) of activity in France's manufacturing and services sectors slipped deeper into contraction territory in May, dampening expectations for a rebound in the euro zone's second-biggest economy. Separate Markit data showed manufacturing output in Germany, Europe's largest economy, increased at its weakest rate since September and service sector growth also slowed. At 0742 GMT, the FTSEurofirst 300 index of top European shares was down 0.5 percent at 1,387.60 points, retreating from 6-1/2 year high hit last week.
