European shares on Tuesday marked a slip following an employment report that triggered concerns about the euro-zone, and shares of oil major BP squeezed in London as the Company's prospects for capping its runaway Gulf of Mexico oil spill remained unpredictable.

The statistical office of the European Union in Luxembourg posted that the seasonally adjusted unemployment rate witnessed in 16 nations that share the euro surged in April to 10.1 percent compared to 10 percent in March, Eurostat.

Unemployment in the euro zone now touches its highest since June 1998.

The figures show Spain as the leader, with a rate of 19.7 percent, marking a rise from 19.5 percent in March.

The European Union and International Monetary Fund last month undertook measures valued at more than $900 billion in a view to back euro-zone governments in restoring order to their finances.

In late morning trading, the Euro Stoxx 50 index marked a slip 2.5 percent, while the FTSE 100 index in London slipped 2.1 percent.

``What you're seeing is a markdown by market makers and some speculative selling by hedge funds,'' Mr. Chillingworth quoted of BP's decline. ``I don't think institutional investors are selling yet.''