LONDON, Nov 1: European stock markets slid on Thursday despite an overnight rally on Wall Street, as investors digested another US interest rate cut and runaway crude oil prices.

World oil prices soared Thursday to a record $96.24 per barrel in New York on concerns over tumbling US crude inventories. High oil prices lift energy costs and erode company profits, while also sparking fears of slower global economic growth.

On Thursday, London’s FTSE 100 index of top shares shed 0.49 per cent to 6,688.70 points near the half-way mark, Frankfurt’s DAX 30 lost 0.33 per cent to 7,993.11 and in Paris the CAC 40 fell 0.48 per cent to 5,819.98 points.

The DJ Euro Stoxx 50 index of top eurozone shares decreased by 0.37 per cent to stand at 4,473.07.

The European single currency stood at 1.4416 after hitting a record high $1.4504 overnight.

The US currency plunged lower after the US Federal Reserve trimmed its key rate by a quarter-point to 4.50 per cent to cushion the US economy from a housing slump.

The move also sparked a Wall Street rally on Wednesday and sent gold prices above $800 an ounce for the first time since 1980.

In Europe on Thursday, investors focused on the banking sector.

Swiss banking group Credit Suisse recorded a 31-per cent drop in net profit for the third quarter due to fallout from the subprime or high-risk mortgage crisis in the United States.

Credit Suisse said in a statement that third quarter net profit had been slashed to 1.302 billion Swiss francs (775.5 million euros, 1.122 billion dollars).

In Frankfurt on Thursday, Commerzbank stock lost 2.39 per cent to 28.58 euros and Deutsche Bank shed 2.11 per cent to 90.11 euros. In Paris, shares in BNP Paribas and Credit Agricole sank by 2.29 per cent and 1.47 per cent to stand at 74.35 euros and 26.89 euros respectively.

Across the Atlantic on Wednesday, the Dow Jones Industrial Average finished up a hefty 1.00 per cent at 13,930.01 points as Wall Street applauded the rate cut.—AFP