LONDON, Aug 9: Global equities turned sharply lower on Thursday, led by heavy falls to leading European stock markets, as worries resurfaced about a weak US subprime mortgage sector, dealers said.

Nearing the half-way stage, London's FTSE 100 index of leading blue-chip shares slid 1.06 per cent to 6,326.40 points.

Frankfurt's DAX 30 shed 1.46 per cent to 7,494.81 points and in Paris the CAC 40 dropped 1.36 per cent to 5,671.02.

The DJ Euro Stoxx 50 index of top eurozone shares decreased by 1.43pc to 4,301.72 points.

European markets had rallied on Tuesday and Wednesday.

In Paris, the share price of BNP Paribas dived 3.17 per cent to 82.74 euros after a unit of the French bank said Thursday it had suspended three of its funds amid concerns sparked by the crisis in the US subprime, or high-risk, mortgage market.

BNP Paribas Investment Partners said it had suspended the funds Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia, adding that it would accept no redemptions or subscriptions until further notice.

There are growing jitters about the potential fallout from problems in US subprime lending sector, where mortgages are provided to people with poor credit histories.

That, in turn, could affect private equity groups because their takeover bids are often financed by large amounts of bank debt.

On Wednesday, Bank of England governor Mervyn King said the credit problems being experienced in the United States did not amount to an “international crisis. Dealers in Hong Kong said share prices there closed lower Thursday as caution re-emerged in late trade after the announcement by BNP.—AFP