Shares in Paris fell 2 per cent in some of the heaviest trading seen this year, with not only technology stocks but also some old economy names taking a hit. The CAC-40 index closed 121.4 lower at 6,027.1.

Prominent among technology losers was STMicroelectronics, down 9.5 per cent at €58, while in telecoms, Bouygues was the heaviest faller, down 7.7 per cent to €535.

France Telecom lost 5 per cent to €130.40 and Alcatel fell 5.3 per cent to €49.58. The recently battered Equant lost another 6.3 per cent to €38.50.

Media companies were also hit. Television company TF1 was down 6.7 per cent at €600 and Canal Plus lost 2.2 per cent to €166.80.

Among old economy stocks, steel manufacturer Usinor fell 12.6 per cent to a 13-month low of €11.80 on talk that a large US broker had revised downwards its estimates for steel prices. Usinor had already shed 8.8 per cent on Tuesday.

Financials bucked the trend, with Credit Lyonnais extending a rebound from recent losses to close up 7.3 per cent at €45.50, while insurer Axa rose 1 per cent to €146.

Frankfurt saw leading stocks push steadily lower. The Xetra DAX index finished off 92.81 at 6,834.88.

Hit hard by the Nasdaq's overnight shakeout, technology stocks were again the main target of the sellers. Deutsche Telekom fell €2.10 to €56.60, Siemens €1.70 to €145 and Epcos €7.56, or 6 per cent, to €118.20.

The old economy also had its casualties, notably steel leader Thyssen Krupp, which fell headlong following disappointing first-quarter results. Talk of a US broker cutting steel price forecasts also weighed on sentiment and the stock tumbled €3.70, or 16.1 per cent, to €19.25 in 11.2 million shares traded.

An earnings downgrade at Deutsche Bank sent retailer Metro down €1.48 to €37.15. The bank is cutting its Metro forecasts by 20 per cent this year and 15 per cent for 2001.

News of the formal sale of Land-Rover lifted BMW, which ended €1.45 firmer at €32.15. Haircare group Wella rose €1.41 to €31.51 on strong results and a Deutsche Bank target price increase to €39.

The FTSE Eurotop 100 index lost 34.22 to 3,585.61, the Eurotop 300 was 14.59 lower at 1,548.41 and the FTSE Eurobloc 100 index fell 18.05 to 1,392.15.