European shares slip at open: London FTSE down 0.07 percent

LONDON, June 28, 2006 (AFP) – European stock markets fell in opening deals on Wednesday, following losses in Tokyo and overnight on Wall Street as investors fretted over the outlook for higher US interest rates, dealers said.

London’s FTSE 100 index of leading shares shed 0.07 percent at 5,648.2 points, Frankfurt’s DAX 30 decreased 0.31 percent to 5,442.2 points and in Paris the CAC 40 index slid 0.41 percent to 4,751.8.

The US Federal Reserve was widely tipped to increase American borrowing costs on Thursday to 5.25 percent to keep inflation in check — but investors are worried about the chances of further rate hikes.