Leading bourses juddered lower, hit by an early slide on Wall Street, Kosovo-driven uncertainty and currency weakness in the shape of renewed slippage for the euro, which hit a record low against the dollar.
Frankfurt rounded off a volatile week with a five-day net decline of 6.1 per cent. The benchmark Xetra DAX index fell 64.22 or 1.3 per cent to 4,799.59. For investors the only marginal comfort was that it could have been a lot worse. The benchmark ended 67 points above its session low.
Insurance shares were visibly weak in spite of analysts' relief that Munich Re, which unveiled 1998 figures, had managed to keep profits pointing upwards last year. However, the group was far from happy about the trading outlook and the shares came off €9.70 at €181. Rival insurer Allianz lost €8 at €281 in sympathy.
Elsewhere among market heavyweights, Deutsche Telekom fell €1.49 to €36.52 and Deutsche Bank gave up 49 cents at €49.41. Volkswagen improved 50 cents to €60, but BMW stayed firmly out of favour among motors stocks, sliding €27 to €628.
Paris ended a volatile week in negative territory as strong gains in the oil sector were cancelled by profit-taking in France Telecom. Growing fears of a protracted crisis in Kosovo and a weak Wall Street also weighed on the market. At the close, the CAC-40 index was down 21.30 or 0.5 per cent to 4,115.71 for a fall on the week of 2.5 per cent.
The continuing rise in crude oil prices buoyed shares in Elf Aquitaine and Total, with the former rising €3.90 to €125 and Total gaining €5.10 or 4.7 per cent to €112.60. But the euphoria over higher oil prices received a damper from sharp losses in the index heavyweight, France Telecom which lost €2.50 to finish at €73.
Luxury goods giant LVMH closed marginally higher at €241.60, after yesterday's court ruling in Amsterdam. The ruling appeared to suggest LVMH would keep the upper hand in its battle with Pinault-Printemps for the control of fashion label Gucci.
Amsterdam fell 8.42 to 525.56 on the AEX index with good demand for Royal Dutch, the market's leading heavyweight, no match for determined selling across most non-oil sectors.
Financials were under fire. ABN AMRO lost 45 cents at €18.80 and Aegon came off €3.15 or 3.7 per cent at €82.30, although trading volumes were modest at best. Steel leader Hoogovens was the day's heaviest casualty, tumbling €1.95 or 5.9 per cent to €31.
Royal Dutch took its cue from buoyant international oil prices, rising €1 to €48.35. Unilever benefited from a solid results statement from rival Swiss foods group Nestle, adding 40 cents to €65.60.
