European stock exchanges faltered on Friday, hammered by persistent oil price fears, disappointing data from the US and another warning from Federal Reserve Chairman Alan Greenspan about prospects for the red-hot US housing market.
The London FTSE 100 index fell 0.53 percent to 5,228.1 while in Paris the CAC 40 lost 0.82 percent to close at 4,342.70. In Frankfurt the DAX shed 1.49 percent to end the week at 4,783.80.
The Euro STOXX 50 index of leading eurozone shares gave up 1.06 percent and closed at 3,224.10.
On the currency market the dollar lost ground against the euro in response to a weaker-than-expected US consumer confidence survey. But the loss was contained by comments from Greenspan suggesting that US interest rate hikes would continue.
Wall Street remained in the doldrums after the disappointing consumer sentiment report and warnings by Greenspan that the current housing boom was a risk for the US economy.
Crude oil futures were slightly lower on global markets but remained above US$67 a barrel -- close to record highs and at levels that could dent economic growth.
Adding to the gloom, the University of Michigan consumer sentiment index fell to 89.1 late this month from 96.5 last month and 92.7 earlier this month.
"It's lackluster summer trading with a very mild negative bias," said Art Hogan, chief market strategist at Jefferies and Co.
Hogan said Greenspan's remarks about a housing imbalance acted as "a reminder that it is weighing on the conscience of the [Federal Reserve] and that's it's something we have to watch."
In London business services group Rentokil Initial fell 2.31 percent to £1.5850 after disclosing that Raphoe Management was not yet ready to put forward a takeover offer.
Advertising giant WPP gave up 1.94 percent to finish at £5.80 on half-year results that fell short of expectations.
Mining issues were also under pressure. BHP Billiton fell 0.80 percent to reach £8.0950 while Rio Tinto lost 0.82 percent and closed at £19.45.
In Paris oil group Total fell 0.77 percent to 205.70 euros despite crude prices that hovered close to record levels. French Prime Minister Dominique de Villepin urged energy industry officials to increase investment "to prepare for the future."
Financial issues were hurt by Greenspan's statements, which suggested further rate hikes in the US. Credit Agricole fell 1.56 percent to 21.45 euros, Axa shed 1.11 percent to reach 21.30 euros and BNP Paribas gave up 0.60 percent to end the session at 58.25 euros.
In Frankfurt tourism group TUI plunged 2.36 percent to 19.05 euros after announcing details of a capital increase of a little more than one billion euros to help it acquire Canadian container ship company CP Ships.
Elsewhere there were declines of 0.46 percent to 385.15 on the AEX in Amsterdam, 0.97 percent to 33,073 on the SP/MIB in Milan, 0.79 percent to 9,904.8 on the IBEX-35 in Madrid, 0.72 percent to 3,205.13 on the BEL-20 in Brussels and 0.61 percent to 6,445.36 on the Swiss Market Index.
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