European shares end down

European shares fell from 3-1/2 year highs yesterday to close one per cent lower, burdened by new signs of slowing US growth and fears of more interest rate hikes, while mining and oil stocks dragged on the market.

Shares were weaker after comments from Federal Reserve officials fuelled worries of more monetary tightening.

The mood was further clouded when Wall Street extended losses from the previous session after US non-manufacturing data showed slowing growth in the services sector and added to worries about a flood of earnings warnings.

By 1538 GMT, the FTSEurofirst 300 index of leading pan European shares was one per cent down at 1,229.7 points - 12.4 points below Tuesday's 41-month peak - while the narrower DJ Euro STOXX 50 shed 1.2 per cent to 3,424 points.

Around Europe, London's FTSE 100 index and the Paris CAC 40 both shed 1.2 per cent, while Frankfurt's DAX trimmed 1.3 per cent. The Swiss Market Index was down 0.2 per cent in Zurich.

Heavily weighted mining stocks like Rio Tinto and Anglo American led the region's blue-chip decliners after a rout in Sydney's resource-heavy stock market sparked a wave of profit-taking in the high-flying sector.

"It's definitely the Aussie factor. There's not much else happening," one London trader said, after Australia's S&P/ASX 200 index posted its biggest points fall since the aftermath of the September 11, 2001 attacks.