(MENAFN- AFP) European stocks slumped on Monday, after heavy losses elsewhere, as investors fretted over the global technology sector, the US interest rate outlook and fresh unrest in Ukraine, dealers said. London's FTSE 100 dropped 1.09 percent to 6,622.84 points, while in Paris the CAC 40 fell 1.08 percent to 4,436.08 points, and the DAX 30 in Frankfurt shed 1.91 percent to 9,510.85 points."The week has started firmly in the red, with UK and European markets following the lead set by Asia," said IG analyst Chris Beauchamp."Reports of unrest in eastern Ukraine are not helping risk appetite, because of fears that the situation may play out in a similar fashion to the events in Crimea -- namely popular discontent, followed by the arrival of Russian forces as protection."Pro-Russians occupying the Donetsk government seat proclaimed independence from Kiev and have vowed to hold a referendum on joining Kremlin rule.The declaration and subsequent appeal for Russian military help should Kiev's new pro-Western leaders resist their independence drive put the nation of 46 million in danger of disintegration and added still more pressure on Western powers to act.The rising tension caused Russian markets to tank, with the Micex stock index down 2.4 percent and RTS stock index slumping 3.6 percent.The ruble slid 1.0 percent to 35.63 to the dollar and by 1.45 percent to 48.94 to the euro, still below the record lows hit after Russia occupied and annexed Crimea.- US faces technology worries -Wall Street had tumbled on Friday on growing worries that the technology sector was overvalued, dealers said, with the tech-heavy Nasdaq Composite Index slumping 2.60 percent in value.The broadly positive US jobs report was also interpreted by the market as confirmation that US Federal Reserve will continue to taper its monetary stimulus steadily and a hike in interest rates from their ultra-low levels is due in mid-2015.US stocks fell further on Monday, with the Dow Jones Industrial Average sliding 0.71 percent to 16,296.31 points in midday trading.The broad-based S&P 500 shed 0.79 percent to 1,850.36, while the Nasdaq Composite Index declined 0.94 percent to 4,089.07."Tech stocks around the world are being particularly hard hit as valuation has suddenly emerged as a consideration," said Briefing.com."The slowdown in enthusiasm for many market leaders and actively traded stocks has raised worries that extreme anxiety will spread more broadly."European markets were also rocked by growing negative sentiment over the tech sectors.British chipmaker ARM Holdings saw its shares slump 2.4 percent to 972.5 pence in London.German semiconductor giant Infineon shed 1.8 percent to 8.59 euros in Frankfurt.Asian equities mostly retreated on Monday, taking their lead from Friday's heavy sell-off in New York.Hong Kong declined 0.59 percent, Tokyo stocks fell 1.69 percent and Sydney shed 0.17 percent, while Shanghai and Bangkok were closed for public holidays."Traders attributed the dip to concerns over whether future earnings, particularly in the technology sector, justified companies' bloated valuations," said Valutrades analyst Joao Monteiro.- Cement merger into mix -Meanwhile in Zurich and Paris on Monday, investors welcomed news of the merger of Swiss cement group Holcim and French rival Lafarge to create LafargeHolcim.The blockbuster deal, which has the backing of both boards and core shareholders, is expected to generate economies of scale of 1.4 billion euros ($1.9 billion) over three years.Shares in Lafarge jumped 2.6 percent to 65.74 euros. Holcim shares rose 1.6 percent to 81.50 francs while the broader Swiss SMI index gave up 1.15 percent. In foreign exchange deals, the euro rose to $1.3745 from $1.3701 late on Friday in New York. The dollar stood at 103.08 yen from 103.25 on Friday.The European single currency advanced to 82.76 British pence from 82.69 pence, while the pound climbed to $1.6607 from $1.6567.On the London Bullion Market, the price of gold firmed to $1,299 an ounce from $1,297.25 on Friday.
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