Shares in Frankfurt fell back yesterday after a bad session for Deutsche Telekom and steady selling across the motor sector.
Negative broker comment combined with rumours of a profits warning to send Deutsche Telekom lower from the opening bell. The group denied the rumours and rushed out first-quarter headline figures in an attempt to set the record straight. But a savage cut in earnings estimates at ABN Amro kept sentiment firmly in check.
The stock, a weak market lately ahead of next month's sale of more state-owned shares, fell €3.95, or 6 per cent, to €62.20 in heavy trading of 8.1 million shares.
In motors, DaimlerChrysler lost 80 cents at €61.26, BMW cam e off €1.72 at €31.78 and Volkswagen fell €1.39 to €46.11. The Xetra DAX index ended 159.55 lower at 7,211.51.
The FTSE Eurobloc 100 index fell 1.9 per cent to 1,476.13, the FTSE Eurotop 100 fell 1.7 per cent to 3,761.03 and the FTSE Eurotop 300 fell 1.4 per cent to 1,583.88.
Paris fell 104.3 to 6,453.05 on the CAC-40 index, a decline of 1.6 per cent.
Cap Gemini was the biggest faller on the CAC, off 6.1 per cent at €206. France Telecom was down 3.9 per cent at €155 as uncertainty continued over how the French government will allocate next-generation mobile licences.
Vivendi was the only new economy stock to buck the trend, rising 80 cents to €114.80. JP Morgan raised its target for the shares to €138, while Goldman Sachs reiterated its "recommended" rating.
Internet access provider LibertySurf fell 4.9 per cent to €38.05 due to concern about the sector, with online retailer Boo.com seen as heading for financial collapse.
Amsterdam lost 8.64 to 668.17 on the AEX index after renewed selling of technology leaders.
Philips shed 89 cents at €48.80 and KPN came off €4.05 at €105.10. UPC tumbled €2.81, or 8.7 per cent, to €29.40 amid worries about falling valuations at Chello, the Internet unit UPC plans to spin off next month.
Other blue-chip fallers included Aegon, down €2.25 at €80.20, and Heineken, which fell €1.90 to €62.10.
Milan's losses accelerated as the session progressed and, by the official close, the Mibtel index was down 744, or 2.3 per cent, at 31,610.
