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5.30pm Markets Update

European stock markets closed  lower amid cautious trading as traders eyed critical  inflation data in the United States later this week, dealers said.

The London FTSE 100 index shed 0.72% to close at  6,520, in Paris the CAC 40 fell 0.71% to finish at  5,898, while in Frankfurt the Dax lost 0.36% to reach  7,678.

The ISEQ in Dublin gave up gains made yesterday, closing down 69 points, or 0.7%, at 9409, with the banks lower.

US shares stumbled as investors worried that the  inflation figures, due on Friday, could prompt the Federal Reserve  to raise interest rates, which would dampen economic activity in the  world's biggest economy.

The Dow Jones was down 0.67% to  13,334, while the Nasdaq composite shed 0.81%   to 2,551 as European markets closed.