LONDON, Aug 21: European stock markets mainly fell on Monday as investors monitored newsflow across the energy sector, dealers said. In Paris the CAC 40 index of leading shares slid 0.36 per cent to 5,117.27 points and Frankfurt's DAX 30 index dropped 0.45 per cent to 5,790.77 points, while London's FTSE 100 added 0.12 per cent to 5,910.50 points.

The DJ Euro Stoxx 50 index of leading eurozone shares shed 0.36 per cent to 3,777.57 points.

The euro stood at 1.2893 dollars.

Before the weekend, US stocks ended a bumper week by closing higher after software titan Microsoft said it was boosting its huge share buyback program by a hefty $16.2 billion.Japanese share prices on Monday slipped below the symbolic 16,000-point level as market players took profits after rapid gains last week.

In Europe, investors digested news that French energy groups Gaz de France and Suez might dispose of some assets to secure European approval for their proposed merger, according to a source close to the matter.

In Belgium a disposal of SPE and in France an auctioning off of natural gas volumes controlled by Suez to competitors is conceivable, the source had said Sunday.

On Monday, shares in Suez sank 1.03 per cent to 32.61 euros while Gaz de France stock fell 0.83 per cent to 28.57 euros.

World oil prices meanwhile jumped higher on reports that major crude exporter Iran had test-fired a short-range missile during military exercises over the weekend, dealers said.

Energy majors were boosted, with French oil giant Total winning 0.76 per cent to 53.35 euros in Paris.

In London, BP shares added 0.73 per cent to 618.5 pence and Anglo-Dutch energy group Royal Dutch Shell saw its 'B' share price win 0.51 per cent to 1,958 pence.

The broad-market Standard and Poor's 500 index closed up 0.37 per cent at 1,302.30.

Wall Street was buoyed by indications of soft US inflation, which raised hopes that the Federal Reserve will continue to hold interest rates steady after recently calling off a long-running campaign of hikes.

—AFP