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Written by: Staff
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LONDON, May 12 (Reuters) European stocks sank on Friday, taking their lead from a lacklustre performance on Wall Street and in Asia as investors continue to worry over soaring metals and oil prices.

Telecoms and basic resources stocks dropped as European shares extended Thursday's slide, while steelmaker ThyssenKrupp rose after raising its forecasts.

By 0727 GMT, the pan-European FTSEurofirst index of 300 leading shares was down 0.6 percent at 1,383.2 points, its lowest in more than a week.

The slide follows a 1.5 percent drop in Tokyo's Nikkei, a 1.2 percent fall in the Dow Jones industrial average and a 2.1 percent drop on Nasdaq.

The drop was the sharpest in nearly four months for U.S.

stocks, where a $1 climb in oil prices, a new peak for copper and a 26-year high for gold also weighed on sentiment.

Among telecom stocks, Vodafone dropped 0.4 percent while Deutsche Telekom fell 0.5 percent after a handful of broker downgrades.

Spain's Telefonica eased 0.6 percent as its shares traded ex-dividend, and after the telecoms giant reported a better-than-expected quarterly profit.

''We would say it would be neutral to positive. Domestic, we'd say was better-than-expected, especially thanks to broadband and pricing plan. LatAm was more or less in line,'' said a Spanish trader. ''I wouldn't bet on a big move although the results are solid.

Mining stocks slid, despite some base metals trading around record highs and brokers upgrading stocks in the sector. Anglo American fell 2.2 percent and Rio Tinto traded 1.9 percent lower.

Elsewhere, ThyssenKrupp rose 1 percent after raising its full-year forecasts after a strong quarterly profit.

In takeover news, Mittal nosed up 0.2 percent and Arcelor dipped 0.8 percent after Mittal said it has U.S. antitrust clearance for its bid to buy Arcelor.

On the economic front, U.S. import-export prices for April and March international trade are due for release at 1230 GMT and the University of Michigan's preliminary May consumer sentiment index at 1345 GMT.

REUTERS MP HS1703

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