Shares in Paris were pulled lower by steep falls in telecoms and media as the Nasdaq opened weaker again. The CAC-40 index fell 1.6 per cent to 6,296.13, its first time below 6,300 since May.
A surprise fall in French consumer confidence data added to worries. National statistics from Insee showed the biggest drop for five years.
Fears that advertising revenues would suffer amid a return of French consumer pessimism sharpened the blow for media companies. TV broadcaster TF1 was down 1.2 per cent at €63.70 and radio group NRJ fell 8.2 per cent to €39.
Among tech and telecom casualties, Alcatel fell 4.4 per cent to €73.35, Thomson Multimedia fell 3.1 per cent to €57.15 and France Telecom 3.8 per cent to €120.30.
The Internet service provider Wanadoo fell almost 10 per cent to €14.60, 23 per cent below its IPO price of €19 set in July, as it prepared to release its first-half results today.
Rival Internet company Liberty Surf tumbled 9.7 per cent to €20.49.
Frankfurt fell back as sellers targeted technology stocks and sent SAP down 7.6 per cent and Siemens 5.4 per cent.
Hit hard by the weakness of the Nasdaq, SAP tumbled €21.45 to €262.75 while Siemens came off €7.95 at €138.45. Infineon fell 1.16 at €54.79.
Financials were mixed ahead of today's decision on interest rates by the European Central Bank. Allianz fell €2.29 to €376.21 and Munich Re €3.95 to €338.55. Commerzbank gave up 42 cents at €32.96, but the rest of the banking sector pushed higher.
BMW gained €1.05 at €40.75 following an upgrade to "buy" at UBS Warburg which lifted its target price to €45. Chemicals were firm with Bayer up €1.25 at €44.51 and BASF €1.57 at €42.08.
Retailers also gained from the swing back to old-economy stocks. Metro put on 57 cents at €48.07 and Karstadt 83 cents at €37.83.
The Xetra DAX index at 5.30 p.m. German time was off 59.48 at 6,802.78.
Amsterdam lost ground on weak technology and media shares. The AEX index ended 1.14 lower at 668.93.
KPN fell 97 cents to €24.93 and Philips €1.75 to €46.69 in 17.1 million shares traded.
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