European stocks slide as global selloff continues

PARIS | Tue Jan 22, 2008 3:14am EST

PARIS Jan 22 (Reuters) - European stocks dropped 4 percent in early trade on Tuesday, adding to the previous session's sharp declines as fears over the prospect of a U.S. recession continued to hit equity markets around the world.

Energy shares were among the hardest hammered as oil prices shed 4 percent. Total (TOTF.PA) fell 3.4 percent and BP (BP.L) lost 3.7 percent. At 0813 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 3.6 percent at 1,233.33 points. The index sank nearly 6 percent on Monday.

"We're in the midst of very bearish sentiment. There's a lot of fear in this street and worldwide," said Tom Hougaard, chief market strategist at City Index Markets.

(Additional reporting by Raissa Kasolowsky in London)

(Reporting by Blaise Robinson)

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