European shares slump

AFP, June, 2008

LONDON (AFP) — Europe's main stock markets slid on Tuesday as oil prices shot higher toward record highs.

"Markets are in a bearish (downwards) mode at the moment. We have had a pretty dreadful six weeks on the back of inflation fears, worries about central bank response and slowing growth," said Peter Dixon, strategist at Commerzbank.

"Clearly that's what's driving the market down. Some sectors -- such as house builders -- are being hit more than others," he added.

In early afternoon trading, London's FTSE 100 index of leading shares was down 1.20 percent at 5,599.10 points.

Frankfurt's DAX 30 index shed 1.58 percent to 6,485.35 points and the Paris CAC 40 index dropped 1.29 percent to 4,453.21.

The Euro Stoxx 50 index of top eurozone shares declined by 1.37 percent to 3,380.53 points.

The ...