"Suddenly, the realisation is dawning that the more immediate outlook for earnings growth is not so rosy, " said Mike Lenhoff, chief strategist at Brewin Dolphin Securities in London. Earnings estimates have been shaved in recent weeks but "they still reflect quite buoyant growth and are nearly twice what we reckon is likely", he said.

Nokia, the world's largest maker of mobile phones, led a decline by technology shares, among industries most sensitive to shifts in economic growth.

National benchmarks slipped in 14 of the 18 western European markets last week. Germany's DAX retreated 1.4%, France's CAC 40 lost 2.1% and in London the FTSE 100 declined 1.2%.

Anglo American, the world's second-largest mining company by sales, fell 4.5%. BHP Billiton, the world's largest mining company, dropped 1.6%.

Gold futures in New York fell to a two-month low on Friday following speculation that demand from investors and jewellers won't pick up in the fourth quarter.

Internet-gambling stocks also tumbled last week after the chairman of Sportingbet became the second manager of a UK webbetting company to be held in the US, which is clamping down on the industry.

Chairman Peter Dicks is being held on a warrant filed in May in Louisiana as part of an investigation of illegal gambling, said a spokesman for the Louisiana State Police.

Sportingbet, the owner of Paradise Poker, lost 3.1%. The company asked for its shares to be suspended from trading on Thursday. Bwin Interactive Entertainment, an Austrian internet bookmaker, sank 13%.

PartyGaming, the world's largest publicly traded online gaming company, slid 8.9%.

Neste Oil, Finland's only oil refiner, led energy-related shares lower after oil fell to a five-month low last week and Merrill Lynch cut its recommendation on re"ners.

The stock dropped 7%, while Total, Europe's third-largest oil company, slipped 3.4%. Crude oil for October delivery touched $66.76 per barrel, the lowest price since April. Merrill Lynch reduced its recommendation on both shares to "neutral" from "buy".

Pirelli, the tire maker and also the largest shareholder in the company that controls Telecom Italia, surged 11%, making it the Stoxx 600's best performer last week.

Telecom Italia said chairman Marco Tronchetti Provera met with News Corp's Rupert Murdoch to discuss buying media content from him. Telecom Italia rose 4.1% last week on speculation the phone company may secure a broader alliance with Murdoch.

Intertek Group jumped 8.8%.

The British testing company for toys and other products said first-half profit climbed 19% on higher sales to oil companies and surging demand from China.