European stocks were down 0.3 percent in morning trade, trimming the previous week's brisk gains, as lower-than-expected Chinese macro data offset expectations of further stimulus measures. .EU

Weak Chinese trade data on Monday underlined the likelihood of more Beijing-backed spending to deal with the damage done to the domestic economy by firms cutting production, inventories and imports in the face of anaemic global demand. Imports fell 2.6 percent on the year in August, confounding expectations of a 3.5 percent rise. Exports grew 2.7 percent, below forecasts for a 3 percent rise in a Reuters poll.

The Federal Reserve looks set to launch a third round of bond purchases this week to try to drive borrowing costs lower and breathe more life into an economy that is not growing fast enough to lower unemployment. Despite political opposition and some internal dissent, economists said a weak report on jobs growth for August was likely enough to convince the U.S. central bank a looser monetary policy was needed.

Investors were also focusing on a number of events expected in Europe during the week, including Germany's constitutional court ruling on the legality of the euro zone's permanent financial rescue fund.

Commodity-related shares will be in the spotlight on Monday, after Glencore (GLEN.L) laid out its revised $36 billion all-share bid for Xstrata (XTA.L), warning it would not improve the terms again as it outlined a fresh offer that made some concessions to recalcitrant shareholders.

Oil major BP (BP.L) is in talks to sell some of its Gulf of Mexico oil fields to Plains Exploration & Production Co for roughly $7 billion, a person familiar with the matter said on Sunday, as the U.K. oil firm looks to raise money to pay for damages from the 2010 oil spill.

Billionaire investor Carl Icahn slammed Navistar International Corp (NAV.N) for naming a new chief executive without consulting large shareholders, and urged the company to offer four board seats to shareholders immediately.

The U.S. Treasury Department said it will sell most of its stake in insurer American International Group Inc (AIG.N), making the government a minority investor for the first time since it rescued the company in the depths of the financial crisis four years ago.

Goldman Sachs (GS.N) and private equity firm CVC Capital Partners Ltd CVC.UL have proposed a debt-for-equity swap for CVC's Australian television network Nine, two sources said on Monday, a deal that would wipe out CVC's equity and pass control to its lenders.

JPMorgan Chase & Co (JPM.N) is considering smaller bonuses for CEO James Dimon and other executives while Citigroup Inc (C.N) is also rethinking executive pay structure, both eager to placate investors after management miscues this year, the Wall Street Journal reported.

U.S. stocks held steady at four-year highs on Friday, closing out their best week since June as a sharply disappointing jobs report only fueled expectations that the Federal Reserve would act to stimulate the economy next week.

The Dow Jones industrial average .DJI ended up 14.64 points, or 0.11 percent, at 13,306.64. The Standard & Poor's 500 Index .SPX was up 5.80 points, or 0.40 percent, at 1,437.92. The Nasdaq Composite Index .IXIC was up 0.61 points, or 0.02 percent, at 3,136.42.

(Reporting by Blaise Robinson; Editing by Toby Chopra)

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