Stock markets in Europe have reacted more cautiously to rises in share values in other parts of the world.

Shares rose modestly Frankfurt and Paris -- but in London, the main share index fell back after an early rise on the opening of business.

This followed a surge in share values in New York which continued in Japan, Hong Kong and Singapore.

The BBC economics correspondent says that the European caution reflects concerns that huge gains can lead to excessive losses: in July a record high on the New York market was followed by a twenty per cent fall.