US housing concerns weigh on world markets

European stocks pared most of their gains Wednesday and Wall Street traded lower after a sharp fall in U.S. housing starts in October fueled concerns the U.S. economic recovery will not be as strong as some expected.

In Europe, the FTSE 100 index of leading British shares closed down 3.8 points, or 0.1 percent, at 5,342.13, while Germany's DAX rose 9.18 points, or 0.2 percent, at 5,787.61. The CAC-40 in France ended less than a point lower at 3,828.16.

All three indexes had been higher earlier but a retreat on Wall Street saw most of the gains wiped out.

The Dow Jones industrial average was down 40.06 points, or 0.4 percent, at 10,397.36 around …