August 16, 2007	Thursday	Sha’aban 2, 1428

LONDON, Aug 15: Europe's main stock markets tumbled again on Wednesday as investors were gripped by concerns over a potential global credit crunch sparked by the troubled US home loan sector.

Global equities were reeling once again, with Asian markets witnessing very steep losses earlier Wednesday after an overnight slump on Wall Street.

The British capital's FTSE 100 index of leading shares fell 1.42 per cent to 6,056.50 points in early afternoon trade.

The FTSE had tumbled by 1.21 per cent in value on Tuesday. That meant Monday's mammoth 2.99-per cent gain had nearly been wiped, amid worries that the current equities downturn could dampen global economic growth.

Elsewhere Wednesday, the Paris CAC 40 index sank 1.54 per cent to 5,394.53 points and Frankfurt's DAX 30 dived 0.97 per cent to 7,353.39.

The DJ Euro Stoxx 50 index of top eurozone shares lost 1.21 per cent to 4,144.91 points.

In foreign exchange dealing, the euro fell below $1.35 for the first time since June 29, as the US currency drew strength from its status as a safe haven in times of financial turmoil.

In Frankfurt, Deutsche Bank shares slumped 3.25 per cent to 91.26 euros.

British banks Barclays and Royal Bank of Scotland fell by 2.75 per cent and 4.18 per cent respectively in London.

US stock markets had sustained heavy losses Tuesday as mounting concerns about tightening credit and fresh jitters about consumer spending sent shares into a tailspin.

The American markets turned lower in the wake of a media report about a troubled investment fund, Sentinel Management Group.—AFP