Sun, Sep 09, 2007 - Page 10 News List

European markets follow Wall Street sharply downward

AFP , LONDON

Europe's stock markets followed Wall Street sharply downward on Friday after a report showing a surprise drop in US payrolls fueled fears that the world's biggest economy is flagging.

The London FTSE 100 index of leading shares lost 1.93 percent to 6,191.20 points. In Frankfurt the DAX 30 fell 2.43 percent to 7,436.63 points and the Paris CAC 40 closed 2.63 percent lower at 5,430.10 points.

The DJ Euro STOXX 50 index lost 2.20 percent to 4,162.42.

The euro stood at 1.3769 dollars in late European trade.

Wall Street shares sank after news emerged that US employers shed 4,000 jobs last month -- the first drop in payrolls in four years. That reignited concerns over the strength of the US economy.

"The depressed housing sector, turbulent financial markets and now a sharp weakening of the labor market is very bad news for the US consumer sector," CIBC economist Audrey Childe-Freeman said.

In London, financials and miners took the heaviest losses. Vedanta Resources fell 4.35 pecent to £18.27, Anglo American was down 4.87 percent at £27.76 and BHP Billiton dropped 2.58 percent at £14.35.

Barclays gave up 4.19 percent to £5.825.

In Paris, banks were also hit. Societe Generale was down 3.91 percent at 113,90 euros after rumors of an impending profit-warning from the lender.

BNP Paribas also closed on heavy losses, down 3.41 percent at 73.12 euros, Dexia fell 2.84 percent to 20.53 euros, and Credit Agricole shed 2.97 percent to 26.45 euros.

Deutsche Postbank retreated 3.61 percent to 50.98 euros.

Elsewhere in Europe, the Swiss SMI dropped 1.74 percent to 8,676.13 points while Milan's SP/MIB plunged 2.39 percent to 38.494 points.

Madrid's IBEX-35 closed 2.29 percent lower at 13,873.40, in Brussels the BEL-20 moved down 2.38 percent to close at 4,227.47 points.

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