European markets closed mostly lower in spite of another record close on Wall Street overnight. Fears of an escalation in the Kosovo conflict also kept the lid on sentiment.
Forestry and paper stocks outperformed, however, rising 3.6 per cent following upbeat results from US and Irish industry leaders on Tuesday. Food producers also delivered strong gains, up 2 per cent, led by Danone, Unilever, and Nestle. Chemicals rose 1.3 per cent on gains in the Netherlands and a broker upgrade for the sector in Germany.
The FTSE Eurobloc 100 index, which covers the leading companies in the euro-zone, closed 4.64 or 0.4 per cent lower at 1,062.23. The FTSE Eurotop 100 index, covering countries both inside and outside monetary union, retreated 16.06 or 0.5 per cent to 3,019.32, while the broader FTSE Eurotop 300 index was 6.19 or 0.5 per cent off to 1,299.96.
Frankfurt brought a four-day upward run of almost 200 to an end, giving up 38.46 at 5,186.76 on the Xetra Dax index. DaimlerChrysler ran into profit-taking after Tuesday's €3.19 advance, slipping €1.70 to €90.25.
Chemicals shares were in demand with Degussa-Huels rising €1.80 to €38.20 while Bayer improved 13 cents to €38.40.First quarter results short of analysts expectations sent telecoms leader Mannesmann down 7.88 at 37.80. Among cyclicals Linde rose 16 to 571.05. Top retailer Karstadt gained 11 to 384.
Paris tracked the rest of Europe southward, ending 18.15 or 0.4 per cent lower to 4,349.26 on the CAC-40.
Danone bucked the trend, adding €14 or 6 per cent to €248.70 on positive first-quarter sales. Vivendi shed €7.50 to €223, a 6.8 per cent loss in three days. Bank stocks struggled with BNP off €1.80 to €74.80 while Societe Generale shed €4.70 to €162.70 and Paribas fell €3.10 to €95.50.
Amsterdam managed to stay positive, thanks to good gains for leading cyclicals. The AEX index ended up 2.61 at 543.60.
In chemicals, DSM gained €4.10 to €81 and Akzo Nobel rose €2.10 or 5.7 per cent to €38.95. Steel leader Hoogovens stayed in demand, adding a further €1.40 to €37.40 for a three-day gains of 12 per cent.
Unilever rose €1.90 to €66.80 with investor interest enlivened by the strong first-quarter sales at French foods leader Danone.
Madrid closed slightly weaker, down €3.29 to €894.05 on the general index, as investors focused on Endesa. Shares in the electricity company were 66 cents off to €22.10 following its $1.5 billion bid for Endesa Chile, the country's leading power generator.
Helsinki was pulled down by a 2.4 per cent drop in market leader Nokia, off 90 cents to €78. The Hex index conceded 28.39 to 6,974.85.
The forestry sector, however, turned in another robust performance, boosted by rising paper prices and upbeat results from International Paper in the US and Jefferson Smurfit in Ireland earlier this week.
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