Shares in Frankfurt swung lower in dull trading volumes as investors once more took their cue from nervous bond and currency markets. Put under pressure by heavy losses at market heavyweight Deutsche Telekom, the Xetra Dax index ended off 122.73 at 7,408.09.
Telekom fell 4.2 per cent to maintain the volatile ride the shares have endured since plans for a further offering of government-held shares was announced late last month.
Weekend press reports in Germany claimed to get close to the amount that the state proposes to float, and in the process reignited a round of stock overhang worries.
The shares finished off 2.90 at 67 after a low of 66.36, although trading volumes at 3.5 million shares were nominal.
Not helped by a dull start for the Nasdaq, the trend was weak right across the technology sectors. Epcos fell 11.50 to 148.50 and Siemens 3.06 to 166.94.
Despite broker optimism at SAP Goldman Sachs reiterated its strong growth forecasts and 950 target price the shares shed 17 at 652.
Paris lost 31.34 to 6,514.42 on the CAC 40 index but trading was thin because of a public holiday.
France Telecom fell 4 per cent to 163.50 amid the broad decline in European telecom shares. Chipmaker STMicroelectronics rose 1.8 per cent to 223.
Energy and transport company Alstom rose 1.1 per cent to 27.50 following disposal of Automation, a materials handling business, and EU go-ahead for its acquisition of the remaining stake in ABB Alstom Power. On the broader market, TV station TF1, which is joining the CAC this week, rose 3 per cent to 810. It replaces Legrand which fell 3.1 per cent to 218.
Amsterdam ended little changed, with the AEX index off 1.40 at 668.87.
Telecoms leader KPN fell to 115.10 as investors caught up with Friday's news that the company's merger talks with Telefonica of Spain had been abandoned.
