Technology shares had a volatile day, starting stronger, falling sharply after the US jobs data, then rising again, with many ending in positive territory. Nokia ended 1.8 per cent higher at €37.05, Ericsson was up 1.6 per cent to €64.50 and Infineon gained 1.8 per cent to €45.79.

The changing moods were not enough to prevent Cap Gemini Ernst & Young, the French computer services and consultancy group, from closing firmly down. Its shares fell 8.8 per cent to €136.40, adding to Thursday's fall of almost 6 per cent, after its disappointing results.

Airline stocks were mixed, with Air France up 1.4 per cent to €20.28 but Alitalia down 0.9 per cent to €1.61 and Swissair down 0.8 per cent to SFr123. The one clear winner was Lufthansa, which rose sharply on news that the union was prepared to compromise in talks next week. The shares rose as much as 7.5 per cent before falling back to show a gain of 5 per cent to €21.70 in late trading. Shares in the German stock market operator Deutsche Borse, which floated in February, reached a new intra-day high after releasing surprisingly good first-quarter results. Pre-tax profit was up 57 per cent to €98.8 million. The shares, which were issued at €335, ended just 0.6 per cent up at €382.93.

Societe Generale was marked 3.7 per cent down at €67.50 as its president, Daniel Bouton, reiterated that first-quarter results for the current year would surpass final-quarter 2000 figures, but said performance would fall off in investment banking and corporate finance in Europe and the US.

Leading European steelmakers came under pressure as UBS Warburg cut its ratings on the sector and reduced recommendations on a number of companies. Warburg said the move followed recent strength in the sector and also pointed to poor steel production figures. Among the downgraded companies, Usinor fell 2.4 cent to €14.55, VA Stahl lost 2.2 per cent to €30.75 and Thyssen Krupp dropped 3.1 per cent to €16.82.