LONDON, Feb 15: European stock markets closed sharply lower on Friday, hit by further losses on Wall Street after much weaker-than-expected US economic data unsettled already nervous investors again.

Dealers said sentiment was cautious in the light of heavy losses in New York on Thursday following downbeat comments from US Federal Reserve chairman Ben Bernanke, who warned about likely sluggish growth ahead.

In London, the London FTSE tumbled 1.56 per cent at 5,787.60 points while in Paris the CAC 40 index lost 1.79pc to 4,771.79 points and in Frankfurt the Dax shed 1.87pc to 6,832.43 points.

The Euro Stoxx 50 index was down 2.07pc at 3,719.28 points.

On Wall Street, stocks were lower, with the Dow Jones Industrial Average down 0.19 per cent at 12,353.33 at 1537 GMT.

Dealers said the latest data, especially the New York region survey by the local Federal Reserve which fell to below zero for the first time since May 2005, clearly rattled nervous investors.

In Paris, sentiment was similarly weak and losses could have been greater had not Wall Street held up reasonably well in the face of the latest weak US economic data, dealers said.

BNP Paribas shed 3.34 per cent to 59.11 euros and Credit Agricole was down 5.34 per cent to 17.56 euros.

In Frankfurt, it was a similar day, with investors preoccupied by continuing losses in the financial sector due to the US subprime crisis.

Elsewhere in Europe, the AEX in Amsterdam was down 1.74 per cent at 434.81 points, Milan's SP/Mib fell 1.63 per cent to 33,568 points, the Bel 20 in Brussels was down 2.63 per cent at 3,662.78 points, Switzerland's SMI shed 1.99 percent to 7,353 points and Madrid's Ibex-35 tumbled 1.8 per cent to 13,313.2 points.—AFP