Friday May 9, 12:51 PM
European equities sapped by runaway oil prices
LONDON (AFP) - European stock markets fell sharply on Friday as record high crude prices above 125 dollars per barrel hurt oil-exposed airlines and heightened concerns about inflation and rising costs, dealers said.
In early afternoon trade, London's FTSE 100 index of top companies fell 1.30 percent to 6,189.40 points, Frankfurt's DAX 30 (Xetra: news) dropped 1.28 percent to 6,981.64 points and in Paris the CAC 40 (Paris: news) slumped 2.24 percent to 4,942.28.
The Euro Stoxx 50 index of leading eurozone shares declined by 1.69 percent to 3,790.61 points.
The European single currency stood at 1.5457 dollars.
In world commodity markets, the price of New York's light sweet crude oil hit a historic peak at 125.98 dollars per barrel on Friday.
High oil prices worry stock market investors because they ramp up companies' costs and bite into profits.
They also sap consumers' incomes because of the knock-on effect of higher domestic energy and motor fuel prices.
In Europe on Friday the airline sector took a hammering from soaring crude oil prices -- which ramp up the cost of kerosene or jet fuel.
In London, British Airways (LSE: BAY.L - news) ' share price dived 3.88 percent to 229.25 pence, while German peer Lufthansa (Xetra: 823212 - news) shed 2.71 percent to 16.51 euros in Frankfurt.
Air France (Paris: FR0000031122 - news) -KLM shares tumbled 3.30 percent to 19.63 euros in Paris deals.
In Asia on Friday, Japanese share prices lost more than two percent, weighed down by disappointing earning results from auto giant Toyota and a stronger yen, which is bad for exporters, dealers said.
The market shrugged off a positive lead from Wall Street after US retailers reported sales that were less gloomy than expected.
The benchmark Nikkei (news) -225 index fell 2.06 percent to close at 13,655.34 points.
On Wall Street on Thursday, stocks had risen modestly as upbeat news from retailers helped ease concerns about an economic downturn, taking the sting out of surging crude oil prices.
The Dow Jones Industrial Average closed up 0.41 percent at 12,866.78 points and the Nasdaq composite (NASDAQ: news) added 0.52 percent to 2,451.24.
The Standard and Poor's broad-market index increased 0.37 percent to 1,397.68 points.
The market opened on a positive note as retailers' monthly sales reports led by Wal-Mart's suggested US economic activity was holding up better than expected.
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