European stock markets struggled against weak German industrial production figures and a slack start for US equities. Frankfurt and Paris both experienced mixed trading.
The turbulence that has characterised trading at Swissair this year reached fresh levels of intensity following a savage downgrade for the stock. The shares fell to 5.3 per cent to SFr134.25 after a low for the session of SFr127.
Having plunged into the red last year following big provisions against its investment in Belgium's Sabena and a string of small French airlines, Swissair has been a one-way ride to nowhere since the beginning of last year.
Then it stood at SFr350. At the start of this year the stock was down to SFr262. And according to ABN, Swissair's sum parts valuation is around SFr71 given that a "sluggish global economy and weak competitive position" is undermining the group's restructuring efforts.
Other brokers feel the outlook for Swissair is indeed uncertain but ABN does appear to be at the extreme end of a bearish range. Deutsche Bank, which says putting a price on Swissair is very difficult, has a valuation of SFr115.
Renault lost ground following a another cut in earnings estimates at Lehman Brothers. The broker, which made downward adjustments last month, is now cutting 2001 estimates by 30 per cent and reining back by 8 per cent for 2002. The shares shed 2.8 per cent at €51.50.
Top utility RWE slipped to the bottom of the FTSE Eurotop 100 performance charts as investors fretted about potential expansion programmes. RWE, which is perceived as overpaying for recent acquisitions, notably Thames Water, is keen to spend money in the US. The shares came off 3.9 per cent at €45.18.
A raft of corporate news from the US produced mixed messages for Europe's technology companies. While Intel and Broadcom were positive, Juniper, 3Com and others told a gloomier story.
