European shares end slightly lower

European shares declined yesterday amid fresh political concerns in the Middle East and worries about the impact of a stronger euro on the region's exporters, but strong miners and oil stocks helped limit the market's fall.

Technology stocks headed market decliners, with the index down 0.9 per cent after it gained 7.6 per cent last week. Traders said investors were concerned about a potential slowdown in the US economy and the falling dollar.

The FTSEurofirst 300 index of leading European shares shed 0.1 per cent to end unofficially at 1,356.28 points, in holiday-thinned volumes.

Tensions over Iran undermined sentiment after the world's fourth-biggest oil exporter vowed to press ahead with its pursuit of nuclear energy.

This pushed crude oil prices one per cent higher to $71.80 a barrel, which bolstered energy-related stocks but rekindled worries of inflationary pressures at a time when economic indicators have been showing a slowdown in US economic growth.

BMW and Renault both fell 0.9 per cent as the dollar hit two-month lows against the euro. Weak US data raised expectations of a widening interest rate gap between the US and the euro zone as the latter continues to tighten borrowing costs, while the former keeps them on hold.

DaimlerChrysler also shed 0.9 per cent, but this was after a German court ruled that it should pay former shareholders of Daimler-Benz AG more money in a dispute over the valuation of their stock during the 1998 merger with Chrysler.