LONDON (TheDeal) -- European markets opened sharply down as Asian stocks tumbled, although in London the FTSE 100 regained some of its spark later in the morning as gold prices rose and gold miners and other mining stocks recovered from some of last week's losses.
China's Shanghai Composite closed down 8.48%, at 3,725.56, its biggest one-day fall in eight years, as investors decided last week's government-influenced rally was likely not sustainable. The technology stock-heavy Shenzhen Composite fell 7% to 2,160.09.
In London, the FTSE 100 was down 0.07% at 6,575.42, while in Paris, the CAC 40 was down 1.21% at 4,996.31. In Frankfurt, the DAX was down 1.08% at 11,224.69.
Ryanair's (RYAAY) - Get Reportfirst-quarter net income rose 25% year on year to €245 million ($271.6 million) in the three months to June 30. But the budget airline also warned that overcapacity could lower fares later in the year. Ryanair was down about 1% in early trading at €12.15.
Swiss bank UBS (UBS) - Get Reportbeat expectations for the second quarter, with an increase in net income of 53% to Sfr1.21 billion ($1.27 billion) in the three months to June. But it was down 1.44% at Sfr21.27, as investors worried some of the good results were due to one-time items and that a change in the bank's wealth-management pricing could affect future inflows.
Consumer goods group Reckitt Benckiser (RBGLY) sprang up 2.81% to 6,074 pence after it announced first half pretax profits of £921 million ($1.43 billion) in the six months to June 30, 10% higher than the same period last year. It said the recovery was strong in developed markets.
Theme park and attractions operator Merlin Entertainments was down over 3% at £410.20 as it warned profits had been dented by an accident on a ride at its Alton Towers park that left four people with serious injuries and forced it to close roller coasters. Profit for the theme park division in 2015 is expected to be between £40 million and £50 million ($62 million and $77 million), compared with £87 million last year.
Stakes rose in the bidding war for online betting company Bwin.party Digital Entertainment as GVC Holdings returned to the table with a new 122.5 pence-a-share cash-and-stock approach. It hopes the revised bid will trump an agreed 104.09 pence a share offer from rival 888 Holdings (EIHDF) . It plans to finance the bid with a €400 million ($443 million) senior loan from Cerberus Capital Management, as well as raising £150 million ($233 million) through an equity placing. Bwin.party was up 1.3% at 110 pence, while GVC was down 0.8% at 525 pence. 888 Holdings was down 2.14% at 171.25.
In Tel Aviv, Israeli generics company Teva Pharmaceutical Industries (TEVA) - Get Report rose 11.8% after agreeing to buy U.S.-listed pharmaceuticals group Allergan's (AGN) - Get Report generics business for $40.5 billion and drop its pursuit of U.S. rival Mylan (MYL) - Get Report, which Mylan has repeatedly rejected.
In Asia, Hong Kong's Hang Seng fell 3.09% to 24,351.96, following the dramatic drops in mainland China. Japan's Nikkei 225 closed up 0.95% at 20,350.10, while Sydney, Australia's ASX 200, bucked the trend to recover 0.43% to 5,589.89 on the back of the resurgence of mining stocks.