LONDON (CNNfn) - Europe's major markets fell at the close Wednesday after spending most of the session in positive territory, but Wall Street's opening declines prompted another pummeling for technology, telecom and media companies. Paris and London fell half a percent while Frankfurt was flat.
The blue-chip CAC 40 in Paris, a leading gainer in recent sessions, fell 33.89 points, or 0.54 percent, to 6,227.53, after advancing as much as 1 percent earlier. London's FTSE 100 index, the benchmark for Europe's biggest stock market, fell 0.5 percent to 6,350.8, after being up as much as 1 percent in morning trading.
In Frankfurt, the Xetra Dax was barely changed, up just 0.41 point, or 0.01 percent, at 7,443.07, while the SMI in Zurich, weighted toward relatively stable drug and financial stocks, advanced 1 percent, or 79.1 points, to 7,550.6.
 The FTSE Eurotop 300, an index of Europe's biggest companies, rose 0.3 percent, with its transport, food and drug sub-indexes climbing more than 1 percent. Media, information technology and telecom stocks slipped more than 1 percent.
The Nasdaq composite index plummeted Wednesday morning, as investors dumped technology stocks after an influential analyst lowered his revenue forecast for software industry leader Microsoft Corp.
But the Dow Jones industrial average was little changed, gaining support after banking firm J.P. Morgan's first-quarter profit exceeded Wall Street's expectations. The Nasdaq dropped 146.64, or more than 3 percent, to 3,909.26. The Dow Jones industrial average rose 51.19 points to 11,337.96, building on Tuesday's 100.52 gain.
Technology, media and telecom stocks took a pounding in Paris, information technology consultant Cap Gemini (FCAP) led the decliners, falling 4.5 percent. Europe's largest pay-TV company, Canal Plus (PAN), dropped 4 percent, utility and media conglomerate Vivendi [PAR:PEX ] fell 3.2 percent, and data network operator Equant (PEQU) slid 3.8 percent.
Index heavyweight France Telecom (FTE) fell 3 percent and chipmaker STMicroelectronics (PSTM) rose 1.7 percent.
Shares in drug company Sanofi-Synthelabo (PSAN) rose 6.2 percent, rebounding after a fall in the previous session. Traders said that there would be only a limited impact on earnings despite concerns over the efficiency of a drug product.
Tire maker Michelin (PML) rose for the second day, advancing 3.6 percent, while auto parts maker Valeo (PFR) shed 1.6 percent to  61.80 as the company was scheduled to publish quarterly earnings. Deutsche Bank raised its rating on the stock to "buy" from "market perform" and set a 70 share-price target.
Shares of packaging maker Péchiney (PPEC) fell 7.5 percent on reports that Canada's Alcan Aluminium may try to pull the plug on plans for a three-way merger with Péchiney and Switzerland's Alusuisse, reportedly because the companies cannot agree on what to divest to appease European Union antitrust concerns. Alusuisse shares rose 2.7 percent in Zurich.
The biggest decliner in London was Rupert Murdoch's British Sky Broadcasting (BSY), which fell 6.5 percent, while the world's second-largest advertising company, WPP (WPP), fell 6.3 percent. Media company Pearson (PSON) fell 5 percent. Spain's Telefónica denied a report that its media division planned to sell its 5 percent stake in the U.K. publisher of daily newspaper Financial Times.
Computer software companies didn't fair any better. Logica (LOG) fell 5.5 percent and accounting software group Sage (SGE) slipped 6.2 percent, while chip maker ARM Holdings (ARM) fell 4.6 percent,
Telecoms operator Cable & Wireless (CW-) rose 3.4 percent as concern eased that Hong Kong-based Pacific Century CyberWorks may be unable to complete its $34 billion purchase of the U.K.'s company's C&W HKT unit in Hong Kong. PCCW said Wednesday it formed a $3 billion Internet and mobile-phone pact with Australian phone company Telstra.
British insurer Prudential (PRU) was the biggest gainer on the FTSE 100 index, rising 5.9 percent after health and beauty retailer Boots (BOOT) announced plans to launch a combined credit and loyalty arm with the Pru's online Internet banking arm Egg. Boots' shares fell 2.2 percent.
Transports stocks also were in favor. Railtrack (RTK), which owns and operates the U.K. rail network, gained 1.7 percent and cruise operator Peninsular & Oriental Steam Navigation Co. (PO-) steamed 5.5 percent higher.
Standard Chartered Bank (STAN) jumped 2.7 percent, lifted by gains earlier Wednesday on stock markets in Asia, where the bank generates a large part of its revenue. Other banks fell. Halifax (HFX) dropped 4.6 percent, Woolwich (WWH) slipped 4.7 percent, and Bank of Scotland (BSCT) declined 4.3 percent.
Dutch-British consumer products powerhouse Unilever (ULVR) rallied 4.4 percent after announcing the $2.3 billion purchase of privately held Slim-Fast, a Florida-based maker of diet foods and drinks.
In Frankfurt, the leading gainer was sportswear and equipment maker Adidas-Salomon [FSE:FADS ], which rose 5.5 percent after acquiring the remaining 49 percent of its Portuguese joint venture for an undisclosed sum.
BASF (FBAS), Europe's biggest chemicals producer, rose 1.6 percent on news the company will conclude a $2.6 billion joint venture to establish a petrochemical plant by the end of April with China's second-largest oil company, China Petrochemical Corp.
Shares in German bank HypoVereinsbank (FHVM) fell 2 percent, while reinsurer Munich Re [FSE:FMUV2] gained 3.5 percent after Allianz (FALV) said it will maintain its 17.2 percent holding in HypoVereinsbank and 25 percent in Munich, which had been in doubt before the collapse of the planned merger of Deutsche Bank and Dresdner Bank. Allianz would have taken a large stake in the combined Deutsche-Dresdner consumer banking unit.
In the currency market, the euro was quoted at $0.9574, virtually unchanged from its value in New York the previous day. 
-- from staff and wire reports
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