LONDON, Jan 9: Europe’s main stock markets on Friday extended recent losses as traders reacted to more negative economic news from around the globe while awaiting key US jobs data.

In late morning trading, London’s FTSE 100 index of leading shares was down 0.40 per cent at 4,487.49 points.

Frankfurt’s DAX 30 fell 0.10 per cent to 4,874.86 points and in Paris the CAC 40 dropped 0.11 per cent to 3,320.72 points.The DJ Euro Stoxx 50 index of leading eurozone shares retreated 0.29 per cent to 2,509.17 points.

The European single currency stood at 1.3709 dollars.

There is clearly an eye towards this afternoon’s US non-farm payroll figures and unemployment rate, said City Index market strategist Joshua Raymond.

The bigger than expected loss in private jobs in the US this week helped to remind us that the US economy is weakening, and this has a knock-on effect on the global economy. In London ahead of the US numbers, it was reported that British manufacturing output sank by the fastest pace in 27 years during November.

Output tumbled by 2.9 per cent in November from October and was down 7.4 per cent on a 12-month basis to record the biggest annual drop since 1981, the Office for National Statistics said.

The latest news on the UK’s manufacturing sector is simply awful, said Capital Economics analyst Paul Dales.

In Frankfurt, shares in the second biggest German bank, Commerzbank, fell sharply on Friday as investors digested news that the state would take a stake of 25 per cent plus one share.

Commerzbank shares showed a loss of 6.76 per cent at 4.90 euros.

On Thursday, Commerzbank shares had closed with a loss of 13.79 per cent following a shock announcement that Berlin would become the bank’s dominant shareholder.

The move was aimed at strengthening the bank as it took over another troubled German lender, Dresdner Bank, a statement said.

European stocks closed lower on Thursday after more dismal economic data and profit warnings from major companies, including the world’s largest retailer Wal-Mart.

But Wall Street shares shook off opening losses and closed mixed Thursday as investors looked past weak sales reports from the retail sector and other grim data.

Some analysts said the market may have drawn encouragement from President-elect Barack Obama’s pledge for a swift and massive stimulus to jolt the US economy out of recession.

Japanese share prices closed down 0.45 percent on Friday, pressured by a stronger yen and investor caution ahead of a US jobs report that is expect to show a fresh wave of layoffs.—AFP