Frankfurt - European shares slumped more than 2 per cent in opening trading Wednesday, picking up on a downbeat end to Wall Street and steep falls in Asia.

As renewed concerns emerged about the outlook for the global economy and profits, Europe's blue-chip Stoxx 50 began the trading day down 2.5 per cent at 2,286 points.

The fall was mirrored across key national European markets with shares in London, Frankfurt, Paris and Zurich all sliding by more than
2 per cent.

Fresh economic concerns resulted in the oil price dropping by 3.3 per cent below 70 dollars a barrel on expectations of falling demand for energy. In July energy prices were heading towards 150 dollars a barrel.

Paris - Followin

Seoul - Shares extended their losses Wednesday on the Seoul stock exchange as investors remained worried over the impact of a global recession.

Tokyo - Tokyo stocks plunged Wednesday as investors worried about the grim outlook for Japanese firms' earnings.

The Nikkei 225 Stock Average tumbled 631.56 points, or 6.79 per cent, to end 8,674.69.

The broader Topix index of all first-section issues also lost 67.41 points, or 7.05 per cent, to 889.23.

Japan's automaker Mitsubishi Motors Corp expected a 7.6-per-cent fall in sales in the year's first six months through September due to slowing demand in the United States and Europe, the company said.

New Del

Sydney - Investors deserted Australian stocks Wednesday in response to a fall on Wall Street.

The ASX 200 lost 146 points, or 3.3 per cent, to 4,146.

Bell Potter Securities analyst James Waggett said the most interesting moves were from the giant miners BHP Billiton Ltd and Rio Tinto Ltd, the latter a takeover target for the former.

While BHP lost almost 5 per cent, Rio was up almost 7 per cent, indicating that traders were factoring in a greater likelihood that BHP would succeed with its hostile merger.