(Removes extraneous word in lead)
* China's biggest loss in over a month
* Japan recession fears rise
* European banks' earnings drag
By Jamie McGeever
LONDON, Oct 21 (Reuters) - European stocks fell on
Wednesday, dragged lower by negative third quarter earnings
reports and the biggest fall in Chinese stocks in over a month.
British publisher Pearson PSON.L slumped 13 percent after
warning about its earnings, and financials were hit as Swedish
banks missed earnings expectations and Credit Suisse CSGN.VX
announced plans to raise 6 billion Swiss francs ($6.29
billion)capital after missing expectations also.
Chinese bourses gave up earlier gains to close down 3
percent, the biggest fall since September 15. Resources and
energy stocks in Europe took their cue from China's weakness and
were among the biggest losers in early trading .SXPP .
In bonds, the cautious mood made for slightly lower yields,
while commodities prices fell - copper futures were down 1
percent and crude oil futures were down more then 1 percent.
"This is a response to the late sell-off in China," said
Craig Erlam, senior market analyst at Oanda in London.
"It was reminiscent of the kind of heavy selling that we saw
back in August when emerging market concerns were very high,
which in turn weighed on sentiment in Europe," he said.
In early trading the FTSEuroFirst index of leading 300
European shares was down two thirds of one percent at 1,423
points .FTEU3 . Pearson and Credit Suisse were the two biggest
losers, down 14 percent PSON.L and 4.5 percent, respectively.
Germany's DAX was down 0.2 percent .GDAXI , France's CAC 40
was down 0.5 percent .FCHI and Britain's FTSE 100 .FTSE was
down 0.3 percent.
In Asia MSCI's broadest index of Asia-Pacific shares outside
Japan .MIAPJ0000PUS slipped 0.3 percent.
In Japan, the slowest growth in exports in over a year
fuelled talk of recession but the prospect of more stimulus from
the Bank of Japan lifted the Nikkei 225 by almost 2 percent to
18.554 points .N225 . ID:nL3N12I05T
($1 = 0.9534 Swiss francs)