June 13, 2006	Tuesday	Jumadi-ul-Awwal 16, 1427

LONDON, June 12: European shares fell on Monday following last week's sharp global stock market downturn, analysts said. In European trading on Monday, London's FTSE 100 index of leading shares fell by an additional 0.50 per cent to 5,626.90 points.

In Paris, the CAC 40 index of leading shares shed 0.65 per cent to 4,736.95 points and Frankfurt's DAX 30 lost 0.94 per cent to 5,412.61 points.

The DJ Euro Stoxx 50 index of leading eurozone shares decreased by 0.85 per cent to 3,491.15 points.

The euro stood at 1.2610 dollars.

Investors across the world have run for cover in recent weeks on concerns over rising inflation and the prospect of further increases rise in the cost of borrowing in the United States.

Equities had nose-dived last week after US Federal Reserve chairman Ben Bernanke delivered an unexpectedly strong inflation warning, which was taken as a sign that further rate hikes could be around the corner.

As a result, Frankfurt shares had plunged 3.9 per cent last week, Paris stocks shed 3.86 per cent and the London market sank by 1.89 per cent.

Wall Street shares had ended lower Friday after a wobbly rally attempt gave way to renewed selling, capping a week of steep losses amid investor skittishness over inflation and the cost of borrowing.

In Monday's London deals, mining companies fared badly on the back of further declines in base metal prices.

“Miners fell as copper prices slipped sharply lower on concerns that rising interest rates could slow economic growth,” analysts at the Sucden brokerage said.

The share price of BHP Billiton shed 2.17 per cent to 945 pence, Kazakhmys lost 1.75 per cent to 1,010 pence and Anglo American slid 1.34 per cent to 1,910 pence.

On Friday, on Wall Street the Dow Jones Industrial Average lost 0.43 per cent to 10,891.92 while the Nasdaq composite shed 0.48 per cent to 2,135.06.

The losses had extended the slump of recent weeks that gathered pace following hawkish comments from Federal Reserve members.—AFP