(Bloomberg) — European stocks were set to extend losses amid concerns over the health of the US economy, as traders look to jobs data later this week for fresh insight.

Euro Stoxx 50 futures fell as much as 1.3% after the underlying index slid by nearly as much on Tuesday. Contracts on Germany’s DAX Index and the UK’s FTSE 100 also declined.

The risk-off mood at the start of a historically tough month for markets came as a closely watched US manufacturing gauge missed forecasts, shifting investor focus toward the odds of an economic slowdown in the world’s largest economy.

European equities were trading at record highs by the end of last week but fears about China’s economy and a slide in commodity prices have weighed on the pan-European Stoxx 600. The focus will now be on the speed and timing of central bank rate cuts.

“Europe’s manufacturing sector remains weak, and earnings forecasts are rolling over,” Citigroup Inc. strategists led by Beata Manthey wrote in a note. “Geoeconomic risks and China weakness also weigh disproportionately on Europe compared to its major peers.”

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