European stocks follow Asian markets down

LONDON, Aug 15, 2007 (AFP) – Europe’s main stock markets tumbled again on Wednesday as investors were gripped by concerns over a potential global credit crunch sparked by the troubled US home loan sector. The American markets turned lower in the wake of a media report about a troubled investment fund, Sentinel Management Group. Global equities are reeling once again, with Asian markets witnessing very steep losses earlier Wednesday after an overnight slump on Wall Street.

The British capital’s FTSE 100 index of leading shares was 0.92 percent lower at 6,087.20 points in late morning trade.

The FTSE had tumbled by 1.21 percent in value on Tuesday. That means that Monday’s mammoth 2.99-percent gain has nearly been wiped out amid worries that the current equities downturn could dampen global economic growth.

Elsewhere Wednesday, the Paris CAC 40 index tumbled 1.25 percent to 5,410.03 points and Frankfurt’s DAX 30 fell 0.67 percent to 7,375.05 points.

The DJ Euro Stoxx 50 index of top eurozone shares declined 0.93 percent to 4,156.71.

In foreign exchange dealing, the euro fell below 1.35 dollars for the first time since June 29, as the US currency drew strength from its status as a sa