LONDON (AFP) - European stock markets drifted lower in early trading as a weak session on Wall Street and record high oil prices weighed on investor sentiment.
The London FTSE 100 index dropped Wednesday by 0.33 percent to 4,691.80 points, with the Frankfurt DAX 30 sagging 0.13 percent to 4,043.62 points and the Paris CAC 40 shedding 0.17 percent to 3,763.86 points.
The DJ Euro Stoxx 50 index of leading eurozone shares lost 0.29 percent to 2,821.97 points.
The euro stood at 1.2275 dollars.
In New York shares struggled on Tuesday after the price of oil passed the 51-dollar mark for the first time.
The Dow Jones Industrials Average of 30 top stocks fell 0.38 percent to 10,177.68 points.
The wider Standard and Poor's 500 index eased 0.06 percent to 1,134.48 points while the technology-laden Nasdaq index gained 0.16 percent to 1,955.50.
The price of light sweet crude for delivery in November rose 32 cents to 51.41 dollars a barrel in pre-opening electronic trading on the New York Mercantile Exchange Wednesday, the highest in the contract's 21-year history.
In Asia the mood was mixed with the Tokyo Nikkei 225 closing 0.92 percent higher at 11,385.38, while the Hang Seng ended 0.45 percent lower at 13,271.57 points in Hong Kong.
In London, AstraZeneca was among the fallers, with uncertainty over its anti-clotting drug Exanta outweighing a confident outlook statement.
The drugs giant confirmed it remains on track to deliver earnings per shares "around the middle" of 2.00-2.15 dollar range for 2004 in a statement issued ahead of the group's annual business review day.
It refused to comment further on Exanta -- other than to confirm that it is continuing discussions with the US Food and Drug Administration.
Last month a panel advised the FDA against the drug's approval on safety concerns.
Volkswagen rose 4.13 percent to 33.3 euros in Frankfurt after chief financial officer Dieter Poetsch told Focus Money the group will post a "clearly better" operating profit next year in comparison to 2004, if the markets don't worsen further.
Meanwhile WestLB upgraded its stance on VW's shares to 'buy' from 'neutral', while Spiegel-Online reported that the auto giant had hired DaimlerChrysler board member Wolfgang Bernhard as head of the Volkswagen brand group.
Shares in European Aeronautic Defense and Space Co fell 0.43 percent to 23.26 euros in Paris after the Financial Times reported the group is poised to announce the acquisition of Racal Instruments, its first major US buy.