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.

Wednesday's renewed fall in European stocks came in the wake of a plunge in shares in Tokyo as investors worried about the grim outlook for Japanese company earnings with the Nikkei 225 index tumbling 6.79 per cent to end 8,674.69.

As trading opened in Europe, shares in Hong Kong had also lost more than 6 per cent with Shanghai's composite index coming under pressure as well on concerns about the impact on Chinese company earnings of a global economic slowdown. Shares in India were also down nearly 4 per cent. (dpa)