By Jonathan Cable LONDON (Reuters) - The euro zone's business downturn dragged on in April, suggesting the region may be falling deeper into recession this quarter, business surveys showed on Monday. The purchasing managers indexes (PMIs) also showed that Germany is now suffering a contraction in business activity that has long dogged France, Italy and Spain.

World oil prices slid on Tuesday as disappointing global manufacturing data sparked concern about the strength of future energy demand, particularly in China, analysts said. Brent North Sea crude for delivery in June dropped 54 cents to $99.85 a barrel in late afternoon deals in London, clawing back heavier losses from earlier trade. New York's main contract, light sweet crude for June, shed 16 cents to $89.03 per barrel. "Commodities took a tumble this morning," said Fawad Razaqzada, analyst at trading firm GFT Markets.

European stock markets advanced solidly Tuesday as traders brushed aside weaker-than-expected economic data out of Germany and China to focus on positive earnings news, analysts said. London's FTSE 100 index of leading companies rose 0.96 percent to stand at 6,340.20 points approaching midday. Frankfurt's DAX 30 won 0.78 percent to 7,535.76 points and in Paris the CAC 40 jumped 1.83 percent to 3,719.08. In foreign exchange deals, the euro fell to $1.2986 from $1.3059 late on Monday in New York.

BERLIN (Reuters) - Germany's private sector shrank for the first time in five months in April, a survey showed on Tuesday, suggesting Europe's largest economy may contract again after an expected recovery in the first quarter. Markit's flash composite Purchasing Managers' Index (PMI) measuring growth in both manufacturing and services, which together account for more than two-thirds of the German economy, fell to 48.8 in April from 50.6 the previous month.