Agencies
London
European shares gave up the day's gains on Monday, the dollar stalled and oil prices fell as investors positioned for a U.S. Federal Reserve meeting later this week that could see interest rates rise for the first time since 2006.
Tepid Chinese economic data was largely shrugged off and stocks rose as much as 1 percent in early European trade, but the momentum gradually faded.
Wall Street looked set to open lower, according to index futures.
The combination of worries about slowing Chinese and global growth and higher U.S. borrowing costs have weighed on markets for weeks, although concern about the potential impact on economic health means many economists see no "liftoff" in U.S. interest rates until next year.
The pan-European FTSEurofirst 300 index, which earlier gained almost 1 percent, was last down 0.2 percent for the day.
Earlier, data showed growth in Chinese investment and factory output in August lagged forecasts. After weak trade and inflation data last week, this made it more likely that third-quarter economic growth may dip below 7 percent for the first time since the financial crisis. Only retail sales beat forecasts.
Shares fell in China and Japan, although MSCI's main index of Asia-Pacific stocks excluding Japan rose 0.6 percent.
China's Shanghai Composite index dropped 2.8 percent and the CSI 300 index of the biggest listed companies in Shanghai and Shenzhen lost 2 percent. Tokyo's Nikkei closed down 1.6 percent.
Among emerging markets, the Turkish Lira fell to a record low of 3.069 to the dollar.
Oil prices fell more than 1 percent after the Chinese data and on the prospect of dwindling demand, which analysts said was likely to diminish further if U.S. interest rates rise.
Brent crude, the global benchmark, was down 57 cents at $47.57 a barrel.
