LONDON, June 12: European stocks slumped on Wednesday towards recent eight-month low points, as the rollercoaster ride on US equity markets continued amid concerns over stock valuations, the global economic outlook and rising Middle East tensions.

Across the 12-nation euro zone, the Euro Stoxx 50 index gave up 2.3 per cent to 3,191.7 points.

In London, the FTSE 100 index of leading shares lost 1.6 per cent to 4,854.5 points.

The German DAX 30 index fell 1.5 per cent to 4,538.1 points, while the French CAC 40 index tumbled 2.0 per cent to 4,027.9 points.

The euro topped $0.95 for the first time since January 2001, though it later slipped back to 0.9485.

European markets lurched into loss after dealers returned to their desks to find that the Dow Jones industrials had tumbled 1.3 per cent by late on Tuesday and the tech-rich Nasdaq had lost 2.2 per cent.

Asian markets followed suit. Tokyo shares fell 1.1 per cent while Hong Kong stocks gave up 0.6 per cent.

The economic news is fine but when companies are still not talking of a brighter outlook this is going to hold things back, said WestLB Panmure European equity strategist Tamsin Hobday.

European pharaceutical and healthcare stocks were in particularly poor shape after the share price of US healthcare firm Abbott Laboratories fell 16 percent on Tuesday after the group cut its second-quarter and full-year earnings forecasts.

The price of shares in British counterpart GlaxoSmithKline shares dropped 3.0 per cent to 1,320 pence, German rival Bayer’s shares fell 1.3 per cent to 33.20 euros, and Franco-German Aventis shares dropped 1.5 per cent to 69.00 euros.

Oil stocks were also lower after London oil prices fell to three-month lows on Tuesday.

BP shares fell 1.8 per cent to 550 pence, Shell lost 2.3 per cent to 500.5 pence and TotalFinaElf was off 1.5 per cent at 158.3 euros.

France Telecom stock tumbled 5.2 per cent to 17.87 euros.

Shares in German chip-maker Infineon fell 4.1 per cent to 15.96 euros after the firm said it had agreed to buy the microchips business of Swedish telephone equipment maker Ericsson for 400 million euros in shares.

Shares in software group SAP fell 2.7 per cent to 109.14 euros following a report that the chief executive officer of US rival Peoplesoft had refrained from confirming that the company was maintaining its profits guidance.

German insurer Allianz saw its shares fall 2.1 per cent to 220.35 euros. The company had earlier said it was holding its profit and sales forecasts for the current business year.—AFP