LONDON, Aug 12: European share prices took a dive on Monday as investors treaded water ahead of a US interest rate decision, economic data and a deadline for US executives to personally certify their accounts.

An announcement late Sunday by US Airways that it has filed for bankruptcy protection also hit European airlines and aircraft manufacturer EADS.

Across the 12-nation euro zone, the Euro Stoxx 50 index had fallen 2.7 per cent to 2,675.88 points in late trades.

The British FTSE 100 index dropped 2.5 per cent to 4,221.6 points, the German DAX 30 index was down by 2.65 per cent to 3,661.08 points and the French CAC 40 index closed 2.42 per cent lower at 3,364.44 points.

The euro stood at 0.9789 dollars.

In New York, share prices tumbled at the opening bell on the US Airways news and amid concern over the US economic outlook.

In early trade, the Dow Jones industrials index of 30 top stocks had fallen 1.18 per cent, while the technology-laden Nasdaq index tumbled 1.11 per cent.

In Asia, Japanese share prices fell 2.5 per cent led by tech stocks, but trading was thin amid a traditional local holiday period. Shares lost 0.5 per cent in Hong Kong, led by properties.

“Liquidity’s very, very poor. People are just waiting for... the Fed, the SEC and the US economic data this week,” said Commerzbank equity strategist Michael O’Sullivan in London.

The US Federal Reserve is set to announce its latest interest rates decision on Tuesday, while the Securities and Exchange Commission (SEC) has given chief executives of 947 US companies until Wednesday to certify their company accounts are accurate.

But although investors had been holding out hopes for a dose of the Fed’s monetary medicine, analysts said a cut now appeared unlikely.

The market faced hurdles on Tuesday when US retail sales data is to be released, and on Thursday in the form of US industrial production numbers, which O’Sullivan said would probably be “quite bad.”

In Frankfurt, RWE, the second-biggest power supplier in Germany, reported 11-per cent growth in net profit for the six months to June to 818 million euros (801 million dollars), thanks mainly to cost-cutting efforts and stabilisation of electricity prices.

Its share price nonetheless fell 0.83 per cent to 35.7 euros in late trading.

Lufthansa, meanwhile, had lost 4.80 per cent to 12.7 euros on the US Airways announcement.

British Airways fell by 3.89 per cent to 142.25 pence in London.

European aerospace group EADS plunged 6.63 per cent to 15.50 euros in Paris despite a statement by commercial aircraft unit Airbus that the US Airways move would not affect its delivery schedule.

Bad weather across Europe hit German insurers, with Allianz off by 4.41 per cent at 128.95 euros and Munich Re down 2.37 per cent at 196.53 euros.

The electronics group Epcos faced expulsion from the DAX index owing to a sharp drop in capitalisation, with pharmaceutical laboratory Altana tipped to take its place.

“The probability may not be 100 per cent, but it is not far off,” said Ralf Zimmermann, an analyst with Bankhaus Sal. Oppenheim.

Epcos shares had lost 3.73 per cent in late trades at 14.20 euros.

Shares in French media giant Vivendi Universal slid 5.29 per cent to 16.10 euros after the French daily La Tribune reported the group was preparing to set aside “several billion euros” in provisions when it releases second-quarter results on Wednesday to account for depreciation in the value of assets.

But the paper added that Vivendi had still not agreed on a final figure as of Friday, citing a source close to the group.

In London, broadcaster BSkyB lost 5.0 per cent to 560 pence.

Paris heavyweight TotalFinaElf’s shares slipped 3.2 per cent to 145.40 euros on negative comments by investment bank JP Morgan which was pessimistic for the energy sector as a whole.

British rival BP was off by 4.10 per cent at 503 pence, while Shell shed 3.13 per cent to 433.5 pence.

In Amsterdam, the AEX index was off by 2.58 per cent at 352.29 points, in Zurich the SMI dropped 1.49 per cent to 5,244.8 points, in Milan the Mib 30 shed 1.83 per cent to 25,214 points, in Madrid the Ibex 35 lost 2.80 per cent at 6,221.10 points, and in Brussels the Bel 20 fell by 1.07 per cent to close at 2,186.72 points.—AFP