Europe's main stock markets dropped Tuesday on disappointing data out of economic powerhouses China and Germany, traders said.

Focus was also on the brewing sector after Foster's maker SABMiller announced that it had agreed a takeover by Anheuser-Busch InBev, the world's biggest beer producer, for about $109 billion (£71 billion, 96 billion euros) excluding debt.

"A bigger than expected fall in Chinese imports has seen European markets follow Asia markets lower as concerns about a slowing Chinese economy keep investors on the back foot," said Michael Hewson, chief market analyst at traders CMC Markets UK.

In midday deals, London's benchmark FTSE 100 index fell 0.77 percent to 6,321.80 points, as shares in heavyweight miners slumped on weak Chinese import figures.

Troubled miner Glencore shed another 5.0 percent in Tuesday trading.
In eurozone shares trading, Frankfurt's DAX 30 index slid 0.98 percent to 10,020 points and the Paris CAC 40 shed 1.28 percent from Monday's close to 4,628.6.

A leading survey released Tuesday said investor sentiment in Germany has slumped this month as the Volkswagen pollution cheating scandal and slowing emerging markets growth dampen the outlook for Europe's top economy.

The widely watched investor confidence index calculated by the ZEW economic institute sank 10.2 points from 12.1 last month to just 1.9 points, its lowest level since October 2014, the think-tank said in a statement.

"The slowdown in China is not just having a detrimental effect on emerging markets, Germany is also suffering as it has strong trade ties with the region," said Craig Erlam, senior market analyst at Oanda trading group.

The euro on Tuesday climbed to $1.1380 from $1.1363 late on Monday in New York, with the single currency winning support from expectations of a US rate hike being delayed until next year.

But sterling slid as official data showed that Britain's annual inflation rate fell back into negative territory in September, hit by lower prices for food and petrol.

The pound retreated to $1.5243 from $1.5347 on Monday.

Traders said the data would put pressure on the Bank of England to delay its plan to start raising British interest rates.

On the corporate front, while most companies' share prices were in the red, SABMiller soared 8.96 percent to £39.46 and Budweiser maker AB InBev won 1.9 percent to 100.25 euros.

The terms of Tuesday's takeover deal were priced at £44 per SABMiller share, higher than a fourth bid tabled by AB InBev on Monday that was worth about £43.50 per share.

European stock markets had mostly fallen on Monday, ending last week's winning streak as traders assessed whether the Federal Reserve would raise US interest rates this year.