LONDON, July 23: European share prices fell to new four-year lows on Tuesday as hopes that US markets would open sharply higher were dashed.

Stocks had earlier risen sharply on bargain hunting after steep declines the previous session left indices trawling depths not seen in years.

Across the euro zone, the Euro Stoxx 50 index, which had slumped by 4.9 per cent on Monday to its lowest level in almost four years, fell another 0.4 per cent to 2,534.7 points.

Asian stocks put in a confident performance earlier Tuesday, with Tokyo shares rising 0.3 per cent and the Hong Kong market leaping 1.4 per cent.

The British FTSE 100 index fell 0.5 per cent to 3,874.3 points, the French CAC 40 index fell

1.0 per cent to 3,119.9 points and the German DAX 30 index shed 1.2 per cent 3,646.1 points.

Among other leading European markets, stocks fell 1.5 per cent in Amsterdam, 0.2 per cent in Madrid, 1.3 per cent in Zurich, 2.3 per cent in Stockholm, but were flat in Milan.

Shares in British media group Reuters rose 1.0 per cent to 302 pence.

The financial news and information provider posted a pre-tax loss — the first in its 18-year history as a listed company — of 88 million pounds for the six months to June 30 2002, but that was a better performance than analysts had expected.

Shares in Volvo were flat at 165 Swedish kronor after the company posted better-than-expected second quarter results.—AFP