Paris - Reacting to the collapse of US bank Lehmann Brothers, the Paris Bourse plunged by nearly 3.5 per cent shortly after opening, led downward by financial shares.

The big losers of the morning included the banks Societe Generale and Credit Agricole, which were down more than 8 per cent in the first hour of trading.

They were followed by the insurance giant Axa, down by 7.66 per cent, and two more banks, Dexia and BNP Paribas, which had lost more than 5 per cent.

After one hour of trading, the Paris Bourse's benchmark CAC 40 had lost 3.39 per cent, to stand at 4,185.66. (dpa)