Another nervous day for the euro helped keep Frankfurt pointing lower. The Xetra Dax index lost a further 127.55 at 7,280.54 for a two-day decline of 3.3 per cent.
Weak technology stocks again dictated direction. Deutsche Telekom tumbled 6.7 per cent or €4.50 to €62.50. Siemens shed €6.56 at €160.68 and Epcos came off €5.30 at €143.20. Deutsche Telekom, weighed down by stock overhang considerations ahead.
The FTSE Eurobloc 100 index lost 1.4 per cent to 1,465.86 and the FTSE Eurotop 100 index 2 per cent at 3,727.36. The FTSE Eurotop 300 index fell 1.5 per cent to 1,613.24. BMW, which fell to €32.33 on news of the disposal of its UK Rover arm, rallied in late trading to close up €1.20 at €34.45, helped by news of strong trading at Volkswagen.
Bumper first-quarter results sent VW up €1.95 at €49. An upbeat trading statement got behind Degussa Huels, sending the stock up €1.22 at €33.50.
Lufthansa hardened 55 cents to €25.30 after Goldman Sachs boosted earnings forecasts for 2000 by 10 per cent and lifted its target price to €87.
Paris lost more than 2 per cent, pulled down by TMTs, with the weakness increasing markedly as the US markets opened. The CAC 40 index lost 144.8 to 6,369.61.
France Telecom, the biggest stock on the CAC, was also its biggest loser, falling 7 per cent or 11.50 to 152. Telecoms and construction group Bouygues fell by 6.7 per cent or €50 to €695, hit by a steep downgrade by leading French broker Cheuvreux.
Canal Plus gave up 5.2 per cent to €218.90 as its unit StudioCanal tumbled more than 40 per cent to €16.80. StudioCanal is about to move to the main Paris bourse market and is trying to raise €200 million for its development.
Alcatel fell 4.5 per cent or €13.50 to €286, having risen strongly last week on hopes for revenues from internet networks. Dresdner Kleinwort Benson cut Alcatel from buy to hold.
Amsterdam ended 5.41 lower at 663.46 on the AEX index after a mixed showing by market heavyweights.
KPN was heavily traded as news of a mobile link with NTT DoCoMo of Japan failed to offset lingering disappointments at the collapse of merger talks with Spain's Telefonica. The shares fell 8.20 or 6.9 per cent at €111.30 in 8.8 million shares traded. Philips lost €1.60 at €47.15.
Strong results from UK rival BP helped Royal Dutch add €1 at €66.35. Unilever put on 92 cents at €48.82.
Madrid lost 2 per cent, with Telefonica turning earlier gains into losses and Banco Santander Central Hispano weaker on reports of a capital increase. The Ibex 35 shed 232.3 to 11,062.
Telefonica closed at €23.98, a fall of 1.5 per cent, as the failed merger with KPN and speculation over the future of the chairman Mr Juan Villalonga continued to affect sentiment. The shares have now lost all they gained after announcement last month.
