European stock markets fell as concerns about interest rates hardened ahead of monetary policy meetings next week at the US Federal Reserve and the European Central Bank.
The FTSE Eurobloc index lost 0.6 per cent at 1,056.79 and the FTSE Eurotop index came off 0.6 per cent at 2,899.78. The broader FTSE Eurotop 300 index ended 0.7 per cent lower at 1,270.90.
Frankfurt ended above the worst of the session with the Xetra DAX down 25.28 at 5,124.55 after touching a low of 5,078.59.
Deutsche Telekom, dogged by stock overhang concerns all week, came off 92 cents at €38.24 as the loyalty shares due to long-term shareholders came into play. Retailer Karstadt jumped €1.22 to €43.22 on news of a share split. Elsewhere in the sector, Metro shed 10 cents at €48.90.
Merger partners Viag and Veba continued to run into profit-taking. The former dropped 46 cents to €19.25 and Veba declined €1.09 to €50.16.
Sports clothing group Adidas Salomon lost €2.85 at €78.
Paris weakened as stocks experienced mixed fortunes. The CAC-40 index finished 40.85 or 0.9 per cent lower at 4,550.57.
Lafarge, the construction group, led the CAC lower. The group declined €4.55 or 4.4 per cent to €99.25, ending a period of strength during which it climbed 9.3 per cent in two sessions.
STMicroelectronics, the semiconductor chip maker, came off €1.20 or 1.6 per cent to €72. The stock was down 5.5 per cent at one stage, hit by talk that it had delivered faulty chips to a client. STM refused to comment.
The shares recovered after analysts said they remained positive about the company, which said its estimates for the third and fourth quarters remained unchanged.
Canal Plus climbed €1.70 or 3 per cent to €57.80 in a partial recovery from the 6.7 per cent loss it sustained in previous sessions this week. The company has been punished for releasing disappointing results last week.
Amsterdam was one of Europe's weaker markets, sliding 1.6 per cent or 8.86 to 539.08 on the AEX index. Supermarket giant Ahold ran into a squall of selling after disappointing results from the sector in the US which generates around half of Ahold's total revenues. The stock fell €1.23 or 4 per cent at €29.67 in 11.6 million shares traded.
Philips gave up €2.05 at €92.45 and Unilever, beset by concerns about tough third-quarter trading shed a further €1.85 at €62.05.
