Shares in Milan recovered most of the losses sustained after Prime Minister Romano Prodi's defeat in a confidence vote and resignation, and the Mibtel index closed a volatile session down 51 to 16,761.
Equity prices dropped sharply after the government lost one vote. Although the Mibtel moved back to positive territory, it closed marginally lower on last-minute profit-taking.
Telecom Italia lost L296 to L8,815 as investors remained discouraged by the group's 19992001 forecasts and industrial plan, leaked earlier this week. Gian Mario Rossignolo, the chairman, apologised for the improper, ill-timed way the data was released. Banca di Roma rose L70 to L2,446 on rekindled hopes of a merger with BCI, down L360 to L9,022.
Frankfurt failed to hold on to its best levels as the dollar pulled back and Wall Street moved into negative territory. The Xetra Dax index ended 111.55 higher at 3,973.44, off a high of 4,042.06.
Business software maker SAP soared DM66 to DM685 after it took the market by surprise with news that sales in the third quarter rose about 43 per cent and that pre-tax profit growth was slightly above that level.
J.P. Morgan said it expected the shares to rise significantly in the next 12 months after the surprisingly strong figures. The US investment bank projected a price target for SAP of DM920
Paris gained 130.50 to 3,090.54 on the CAC 40 index to end the week more or less where it started. The dollar rallied modestly but sentiment remained deeply troubled by worries about the slowing global economy.
Banks were firm with Paribas up FFr24.50 or 8.4 per cent at FFr315.50. Luxury goods groups did well, with LVMH adding FFr62 to FFr860 and L'Oreal FFr230 or 9.7 per cent to FFr2,600.
Accor gained FFr69 to FFr970 in spite of a reduced target price at Goldman Sachs. The broker cut back from FFr1,800 to FFr1,325. Pernod Ricard fell steeply, sliding FFr34 or 9 per cent to FFr346 after yesterday's analysts' meeting.
