European share indices slipped to fresh 2004 lows today as weak US job figures published on Friday continued to weigh on investor sentiment, though Dutch telecoms firm KPN gained after solid results.
Trading was relatively light and prices volatile during the traditionally quiet summer period. British banks remained in focus as ongoing speculation of takeover activity supported Abbey National and Barclays.
This morning, the FTSE Eurotop 300 index of European blue-chip shares had fallen 0.5 per cent to 950.2 points, its lowest intraday level since December 29, 2003.
The narrower DJ Euro Stoxx 50 index was down 0.7 per cent at 2,601.69 points.
Stocks tumbled on Friday after data showed US employers added a meagre 32,000 workers to payrolls in July, far less than expected. That fuelled fears that the economic recovery which markets have been pricing in may be losing steam.
"We would own defensive and stable growth sectors as earnings momentum is rolling over on both sides of the Atlantic, whether measured by surprise ratios, earnings revisions, earnings growth or return on equity, although reported results continue to look robust," Morgan Stanley strategist Mr Ronan Carr said in a note.