Quarterly results drag markets down

Up more than 5 per cent in three sessions, Frankfurt fell steeply as a wave of downbeat results and dull bonds sparked profit-taking.

The benchmark Xetra DAX index ended electronic trading at 4,564.12, comfortably off the day's low of 4,524.42 but still down 118.58 or 2.5 per cent.

Pessimistic third-quarter statements from Deutsche Telekom and HypoVereinsbank and a shakeout for the motor sector, boosted recently by solid results from Volkswagen, supplied most of the downside pressures.

Paris gave up 57.15 at 3,493.60 on the CAC-40 index, with a strong performance by Alcatel helping cushion the downturn.

Alcatel, which put out a profits warning last month, shot ahead following a third-quarter sales statement that contained no fresh shocks.

Amsterdam fell 20.14 to 975.38 on the AEX index in moderate volumes, pushed lower by weak financials and steep falls for Akzo Nobel and Philips. Akzo Nobel's third-quarter results left most brokers' estimates for this year looking too optimistic. Zurich slipped 38.4 to 6,411.4 on profit-taking after the market's strong run and concerns about Russia, Brazil and China. Milan ended lower on nervous trading, with the Mibtel index down 620 or 3 per cent to 19,564 on profit-taking in a thin market following the rise in shares earlier in the week.

Banks, which had gained ground this week, were lower. Madrid, which weakened in early trading on rumours of a Brazilian devaluation, was hit by later pessimism over banks, and the general index closed down 14.10 or 1.9 per cent to 749.26.

Volumes were thin as investors waited for the Brazilian austerity package. Profit-taking in companies with Latin American ties and selling of bank shares led the day's activity.