July 06, 2006	Thursday	Jumadi-ul-Sani 9, 1427

LONDON, July 5: European stocks weakened on Wednesday as investors fretted over North Korea's reported missile tests, ahead of Wall Street's return from the Fourth of July holiday break, dealers said.

Tokyo share prices had also stumbled Wednesday as investors reacted nervously to news of a series of missile launches which have been condemned by Britain, Japan, South Korea and the United States.

In European trade, London's FTSE 100 index of leading shares slipped 0.59 per cent to 5,848.60 points, Frankfurt's DAX 30 index lost 0.76 per cent to 5,685.70 points and in Paris the CAC 40 shed 0.60 per cent to 4,953.97 points.

The DJ Euro Stoxx 50 index of leading eurozone shares declined 0.66 per cent to 3,646.46 points. The euro stood at $1.2747.

US financial markets were set to reopen later Wednesday following the Independence Day holiday break.

North Korea early Wednesday launched at least six missiles, including one capable of reaching US soil, although all splashed down in the Sea of Japan (East Sea), according to US and Japanese officials.

The FTSE 100 was lower (on Wednesday), following weaker Asian markets after North Korea test-fired several long range missiles, noted analysts at the Sucden brokerage.

In London trading, Alliance and Leicester shares dived 5.74 per cent to 1,083 pence after Credit Agricole, the biggest French bank, said that it would not launch a takeover bid for its British peer.

In Paris, Credit Agricole -- which is currently embroiled in a bid battle for control of Greek bank Emporiki with The Bank of Cyprus -- saw its share price sink 0.76 per cent to 30.06 euros.

Dealers said the launch of the missiles provided a good reason for profit-taking after four consecutive days of Japanese gains.

On Wall Street on Monday, US stocks had closed with gains in a holiday-shortened session, with little on the corporate burner and investors appearing to shrug off an industry report showing a manufacturing slowdown.

The Dow Jones Industrial Average climbed 0.70 per cent to close at 11,228.02 points and the tech-heavy Nasdaq composite rose 0.84 per cent to 2,190.43.

The broad-market Standard and Poor's 500 gained 0.79 per cent to 1,280.19 points.—AFP