LONDON, July 11: European stocks fell sharply in initial trading on Thursday as the markets took their lead from New York, where stocks have been depressed by concern over accounting pratices in corporate America.

Across the 12-nation euro zone the Euro Stoxx 50 index, which had fallen by 2.87 per cent on Wednesday, plunged 2.3 per cent to 2,916.4 points.

The British FTSE 100 index dropped 1.3 per cent to 4,361.6 points, the German DAX 30 index lost 0.6 per cent to 4,164.3 points while the French CAC 40 index fell 1.9 per cent to 3,588.4 points.

Elsewhere in Europe, shares plunged 2.1pc in Madrid, 1.8pc in Amsterdam, 1.9pc in Zurich, 2.0 per cent in Milan, and 1.0 per cent in Stockholm.—AFP