European markets swung lower as a resurgence of interest rate concerns sparked a continent-wide wave of selling. Taking their cue from wobbling bond markets and an uncertain opening on Wall Street, leading equities back-pedalled across the board. The FTSE Eurobloc 100 index ended 2.1 per cent lower at 1,081.90.
The FTSE Eurotop 100 index shed 2.1 per cent at 2,980.01 and the broader FTSE Eurotop 300 index came off 2 per cent at 1,300.73.
Paris ended lower despite the continued strength of the retail sector. The CAC 40 index fell 68.22 or 1.5 per cent to 4,589.22. Three of the four CAC stocks to post gains were retailers. Carrefour prospered on news of its take-over of Promodes, rising €13.60 or 9.7 per cent to €154.
Promodes ended €64 or 7.7 per cent better at €893. The two stocks' progress helped lift rival Casino €3.70 or 3.9 per cent to €99.70.
Renault, the carmaker, was the only other company to end in positive territory, climbing €1.18 or 2.4 per cent to €51 after its partner Nissan said the Japanese car market was bottoming out.
In Frankfurt, the Xetra Dax index tumbled 121.76 or 2.3 per cent to close within a whisker of its low for the day at 5,270.77.
Banks came under heavy pressure. Deutsche Bank fell €1.36 to €71.05 and Dresdner €1.86 at €43.03. Hypovereinsbank, further weakened by a press report of possible damaging litigation, shed €3.75 or 6.4 per cent at €55. DaimlerChrysler lost €2.44 at €71.05 with investors paying scant heed to news that Peugeot of France could put its weight behind the German group's struggling Smart car.
Amsterdam fell 2 per cent with the AEX index closing off 11.94 at 572.42, its low for the session. Financials found themselves at the front of the line of fire. Aegon lost €1.95 at €82.80 and ABN Amro 40 cents at €23.05. ING was down €1.30 or 2.4 per cent at €51.90.
Among internationals, Philips gave up €2.30 at €97.55 and Unilever €1.80 at €65.85, although in each case trading volume was minimal.
TNT Post incurred investors' wrath by wheeling out first half results that were seen as bottom of the broker forecast range. The shares lost €1.55 or 6.2 per cent to €23.35.
Milan slid in the absence of support from any strong sectors. The Mibtel index ended 444 or 1.9 per cent down at 23,540. Olivetti, the computer and telecommunications company, was the most traded stock as profit-takers moved in to take advantage of last week's gains. The shares came off 9 cents or 4 per cent to €2.20 for a two-day fall of 7 per cent, against a rise of 8.8 per cent last week.
Rinascente, the retailer, outperformed the market but still posted only a modest gain compared with other European retail stocks. It climbed 14 cents or 1.8 per cent to €7.55.
