LONDON, July 2: Europe's main stock markets dropped in morning deals on Monday, with London trading affected by security worries after the failed bomb attacks across Britain.

In Paris, shares in Groupe Eurotunnel, the restructured operator of the Channel tunnel rail link between Britain and France, fell by more than one third at the start of their first trading day.

London's FTSE 100 index of leading shares slid 0.38 per cent to 6,583.00 points, Frankfurts DAX 30 index lost 0.90 per cent to 7,935.05 points and in Paris the CAC 40 shed 0.68 per cent to 6,013.88.

The DJ Euro Stoxx 50 index of leading eurozone shares declined by 0.82 per cent to 4,453.06 points.

The euro stood at 1.3574 dollars.

Britain has been put on maximum security alert after the failed attacks in London and Glasgow, which came days after a new Labour government took office and ahead of the anniversary of July 7, 2005 suicide bombings in London.

The share price of British Airways slid 0.96 per cent to 414.5 pence in early deals, shaken by the failed car bomb attack on Glasgow Airport, dealers said.

As well as the security situation, the market was awaiting the Bank of England's latest interest-rate decision on Thursday and key US jobs data on Friday, Potts added.

The Bank of England was widely expected to hike British borrowing costs by a quarter-point to 5.75 per cent, while further rate tightening could follow before the end of 2007, analysts have said.The European Central Bank was forecast to keep eurozone interest rates unchanged on Thursday.—AFP