European shares slump after blasts From correspondents in London, Paris and Frankfurt July 07, 2005
EUROPEAN stock markets slumped today after a series of multiple explosions hit the British capital, London, shutting down part of its transport network, with "terrible injuries" reported.
The capital's FTSE 100 index of leading shares plunged 2.49 per cent to 5,099.20 points, after opening 0.18 per cent down at 5,220.2 points earlier.
Sterling also slid to to a low of $US1.7404 while the euro shot up to a high point of 0.6892 pounds after news of the incident. The Paris stock market fell by 3.15 per cent.
The fall was lead by a drop in the value of shares in oil group Total, which slumped by 3.95 per cent.
The CAC 40 index of leading shares was showing a loss of 3.15 per cent to 4,140.12 points.
Share prices on the Frankfurt stock exchange plummeted also.
At 11:30 AM (1930 AEST), the German blue-chip DAX 30 index was down 3.27 per cent at 4,464.56 points.
"It is causing a sense of unease," Jeremy Batstone, stock market analyst at Charles Stanley in London, said.
British Home Secretary Charles Clarke said a series of blasts in central London had caused "terrible injuries'', though he did not give specific figures.
The Scotland Yard police centre said it had received reports of "multiple explosions'' across the capital.
London's entire underground railway network was suspended in what a spokesman described as a "major incident'' that officials and rescue workers said had left several people injured.
Police evacuated a number of mainline railway and underground stations after a blast near Liverpool Street Station, which serves London's financial district, and a separate incident in the west of the capital.
The cause of the blast remained unclear, Mr Batstone said.
"Obviously, the worst scenario, and there is no proof that this is the case, would be some form of terrorist or anarchist activity.
"That would be pretty negative for the FTSE, but it's too early to jump on conclusions.''
The chaos came a day after the British capital was chosen to host the 2012 Olympics.
