Indications from BASF of a slowdown in sales in the chemicals sector and a warning that the company's 1999 results would not match the current year's performance sent Frankfurt lower for a second day.

The Xetra Dax index closed 81.04 or 1.7 per cent lower at 4,6881.34 as the weak early performance of Wall Street also failed to provide inspiration. BASF lost DM2.10 to DM63.90 after the group reported that the sluggish dollar and price pressure had weighed heavily on its third-quarter performance.

The only chemicals group to buck the weak trend was Degussa, which edged 10 pfg higher to DM80.60 in response to its news of a higher dividend.

Milan lost ground on profit-taking in banking shares, and the Mibtel index fell 196 to 20,214.

Paris edged lower for a second day, ending down just over 1 per cent on a quieter-than-average day.

The CAC-40 index closed off 40.58 at 3,544.74 after trading around 3,500 for much of the day. The total volume traded was about FFr10 billion, compared with an October average of FFr12 billion.

Market operators said some blue-chip stocks were being sold to raise cash for the forthcoming France Telecom share issue. France Telecom itself shrugged off recent pressure to finish up FFr10.20 or 2.8 per cent at FFr379.90.

Madrid retreated on profit-taking and the general index closed down 12.47 or 1.6 per cent at 788.28.

Helsinki was dragged down by a decline in Nokia and the Hex index fell 104.86 or 2.3 per cent to 4,426.04.