Global shares falter on weak outlook for global economy

US stocks slipped in light trading on Monday, pulling back from recent five-year highs ahead of an earnings season expected to be weak.

The Dow Jones industrial average fell 26.50 points, or 0.19 percent, to 13,583.65 at the close. The S&P 500 lost 5.05 points, or 0.35 percent, to 1,455.88. The Nasdaq Composite dropped 23.83 points, or 0.76 percent, to end at 3,112.35.

European shares fell after a downbeat report on the outlook for Asian growth capped investor sentiment around corporate earnings, and kept markets firmly within their recent tight trading range.

Economic concerns mounted after the World Bank cut forecasts for the East Asia and Pacific region, saying the slowdown in China - the world's largest consumer of raw materials - could worsen and last longer than expected.

The FTSEurofirst 300 index closed down around 1 percent at 1,101.02 points, erasing much of a 1 percent rise on Friday after better-than-expected US employment data. The index has traded in a tight 25 point range since Sept. 26.

The euro zone Euro STOXX 50 index fell 1.4 percent to 2,496.09 points.