LONDON (AFP) - European stock markets struggled in early trading as a disappointing outlook from Dutch electronics giant Philips and record high oil prices dented sentiment, dealers said.
The London FTSE 100 index shed 0.80 percent to 4,648.10 points, the Frankfurt DAX 30 dropped 1.44 percent to 3,960.00 points and the Paris CAC 40 fell 1.14 percent to 3,685.21 points.
The DJ Euro Stoxx 50 index of leading eurozone shares declined 0.99 percent to 2,785.98 points.
The euro stood at 1.2307 dollars.
There was little direction from New York, where shares rose slightly on Monday, clawing back from last week's losses despite record high oil prices, in light trading during the Columbus Day observance.
The Dow Jones Industrial Average gained 0.27 percent to 10,081.97 points, and the tech-heavy Nasdaq composite added 0.46 percent to 1,928.76.
The Standard and Poor's 500 broad-market index advanced 0.20 percent to 1,124.39 points.
US crude oil futures rose above 54 dollars a barrel for the first time in electronic trading on Tuesday on worries about supply problems in the Gulf of Mexico and strikes in Nigeria and Norway.
Rising oil prices rattled investors in Asia, with the Tokyo Stock Exchange's benchmark Nikkei-225 index closing down 1.30 percent at 11,201.81 points.
In Hong Kong the Hang Seng Index ended 0.40 percent lower at 13,251.59 points.
European technology shares were under pressure after Dutch electronics giant Philips gave a downbeat forecast for two of its core markets, consumer electronics and semiconductors, dealers said.
Philips shares fell 3.06 percent to 18.40 euros in Amsterdam after the company forecast flat fourth-quarter sales at the semiconductors division and continued margin pressure in consumer electronics.
In London retailer Marks and Spencer eked out a gain of 0.95 percent to 346.25 pence after its second quarter trading statement showed that the decline in its non-food sales stabilised in the final weeks of September.
"While current sales trends look dire, we believe the cost and margin package combined with the tender offer will drive substantial earnings progress provided sales trends can be stabilised by new management," analysts at Citigroup Smith Barney commented, reiterating a "buy" recommendation.
Peugeot shares dropped 3.5 percent to 48.01 euros in Paris after Deutsche Bank cut its 2004 operating profit forecast for the auto maker to 2.2 billion euros from 2.4 billion, but retained a "buy" rating on the stock.