Markets were relieved to see the FTSE Eurotop 300 index close with a modest net improvement on the week after renewed monetary easing by central banks but no real let-up in the flow of corporate profit-warnings.
Yesterday, car-maker Fiat became the latest European blue-chip to own up to being blown off course by tough business conditions, and the shares fell precipitously amid talk of imminent broker downgrades.
News that the Italian giant would not meet its targets for cashflow and operating profits this year cast a cloud on the sector. Renault shed 4.4 per cent at €32.20, Volkswagen 2.4 per cent at 39.50 and DaimlerChrysler 2.3 per cent at €36.88.
Fiat itself was at the bottom of the heap, sliding to €16.56 before rallying modestly to €16.87 in late trading, down 6.5 per cent.
Motor component stocks fared better. Valeo added 0.3 per cent at €36.54 and Michelin 4.1 per cent at €30.91 - helped by promotion to Goldman Sachs' list of top auto picks.
Most oil stocks fell after UBS Warburg cut a range of price targets in the sector. The broker upgraded Royal Dutch to "buy" and TotalFinaElf to "strong buy", but reduced target prices for both to €63.50 and €175 respectively.
A moderately better day for the crude price after its recent slide failed to lift spirits and Royal Dutch lost 2.4 per cent at €55.81 and Eni 2.7 per cent at €13.34.
Repsol, under pressure from Latin American concerns, fell 6.5 per cent to €14.75. Total ended little changed at €152.20.
Good news in the airline sector is rare these days but Alitalia managed to cling to modest gains after revealing a radical programme of restructuring. The stock, which ran into a number of trading suspensions throughout the Milan session aimed at curbing volatility, was up 1.6 per cent at 81 cents in the late afternoon.
