European shares open lower, FTSE leads losses

(Reuters) - European shares opened lower on Tuesday as investors stayed on the sidelines ahead of the European Central Bank's monetary policy meeting later this week.

Weak factory data from China that showed prices shrunk in August at their fastest pace in three years dented investor sentiment already dulled by a weak handover from Wall Street overnight.

The pan-European stocks benchmark index STOXX 600 <.STOXX> was down 0.2% by 0706 GMT and looked to extend losses to a second day.

China-sensitive German stocks <.GDAXI> fell 0.1%, while London stocks <.FTSE> slipped 0.4% ahead of July unemployment report due later in the session.

(Reporting by Susan Mathew in Bengaluru; editing by Arun Koyyur)