European stocks slide on tension over Syria

European equities fell today, mirroring losses in Asia and on Wall Street, as investors eyed possible US military intervention in Syria and sent the price of safe-haven gold soaring.

The FTSE 100 index of leading shares dropped by 0.64 per cent to stand at 6,450.56 points.

The CAC 40 index in Paris shed 1.40 per cent to 4,010.28 points and Frankfurt's DAX 30 sank 1.49 per cent to 8,309.10 as Syria concerns overshadowed the news of buoyant German business confidence.

Sterling fell against the euro to 85.97 pence for one euro and against the dollar to 1.5519 USD.

Global oil prices advanced over concerns about renewed instability in the crude-rich Middle East region, with Brent oil hitting a near six-month high close to 112 USD a barrel.

Gold prices rallied to 1,411 USD an ounce, up from 1,377.5 USD the previous session, as many investors parked their cash in the commodity seen as a safe bet in times of unrest.

Wall Street stocks had fallen yesterday after US Secretary of State John Kerry warned that the United States would demand 'accountability' after an 'obscene' chemical weapons attack on Syrian civilians.

'Markets are tanking in Europe today, as Syria related risk-aversion prevails,' said trader Anita Paluch at Gekko Markets.

New York's Dow Jones Industrial Average shed 0.43 per cent to finish at 14,946.46 points.

In Asia, Hong Kong equities slid 0.59 per cent today and Tokyo shed 0.69 per cent, but Sydney eked out a slender gain of 0.11 per cent.

Emerging markets also remained under the spotlight due to lingering concern that tighter US monetary policy could spark massive outflows of foreign cash back to the West.

The Turkish lira that fell to a record low level plunged to 2.033 in mid-morning today.

Turkey is caught up in a currency turmoil that spreads across emerging economies in Asia, Latin America, Russia and South Africa as investors pull out funds because of the imminent change in the US monetary climate as well as in global interest rates.