LONDON, Sept 7: Europe’s main stock markets fell on Friday as banking shares slid on speculation that French bank Societe Generale may issue a profit warning because of losses linked to US subprime mortgages.

Dealers were also looking ahead to a key US employment report, dealers said.

The London FTSE 100 index of leading shares eased 0.06 per cent to 6,309.50 points in late morning trade.Frankfurt’s DAX 30 dropped 0.52 per cent to 7,581.80 points and in Paris the CAC 40 lost 0.72 per cent to 5,536.25.

The DJ Euro Stoxx 50 index declined 0.53 per cent to 4,233.49 points.

The euro stood at 1.3667 dollars.

Market were awaiting Friday’s release of August non-farm payroll data in the United States which could have a major influence on whether, and by how much, the Federal Reserve might cut US interest rates later this month.

They were also keeping a close eye on credit concerns. Banking stocks tumbled in London, Frankfurt and Paris on rumours that Societe Generale has been hit hard by the US subprime mortgage collapse.

Financial markets remain on alert for any sign that rising defaults in the US subprime mortgage sector for borrowers with poor credit histories are affecting the overall economy.

In Paris, the share price of Societe Generale dived by 4.50 per cent to 113.2 euros and French peer BNP Paribas shed 3.03 per cent to 73.41 euros.

We’re hearing vague rumours they’ll (SG will) issue weak numbers, said a London-based trader.

In Frankfurt, Commerzbank slid 2.82 per cent to 29.33 euros while on London’s FTSE 100, Barclays shed 2.38 per cent to 593.5 pence and Royal Bank of Scotland dropped 1.97 per cent to 547 pence.

US stocks ended modestly higher on Thursday, as the latest economic data and retail sales reports suggested consumer spending and the overall economy is withstanding credit and housing troubles.

Gains were limited, and trading was hesitant with some market participants still cautious about credit conditions and bracing for a key report on US payrolls for August.—AFP