European shares sank on Thursday and investors sought safe-haven options like the Swiss franc and government bonds as a series of explosions hit London's transport network. U.S. crude oil prices also fell sharply to less than $60 a barrel, having set a new record of $62.10 in earlier trade, as traders fretted over a possible repeat of the economic downturn that followed the Sept. 11 attacks in the United States. But dealers also said the economic fallout could be contained if there was no lasting impact on consumer confidence and that trading would continue despite reports of some dealing room evacuations. "There's no panic at all," said David Franklin of Christows Stockbrokers. Police reports initially spoke of a power surge on London's underground, but that was followed by news of at least three bus explosions. The FTSE 100 index of leading British shares fell by 3.7 percent, while the pan-European FTSEurofirst300 index lost 4.1 percent. The British pound was trading near a 19-month low against the dollar, at around $1.7435, and also fell to as lows as 68 pence against the euro. Benchmark 10-year euro zone government bonds yielded around 3.115 percents, down from Wednesday's 3.22 percent close. U.S. Treasury debt also leapt, pushing comparable yields below 4 percent. The market had been steady in earlier trade ahead of Friday's nonfarm payrolls report which was expected to strengthen expectations that the Federal Reserve will keep raising rates by showing 188,500 new U.S. jobs were created in June compared to 78,000 in May.