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Europe slips on techs
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May 22, 2000: 12:23 p.m. ET
Technology, telecoms and media hit by latest plunge on Wall Street
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LONDON (CNNfn) - Europe's major equity markets closed sharply lower Monday, giving up modest early gains as technology, media and telecom stocks again came under pressure after the latest tech-led sell-off in U.S. markets. Paris and Frankfurt ended the session more than 1 percent lower.
The CAC 40 index in Paris fell 92 points, or 1.5 percent, to 6,103.99, with Europe's largest pay-TV company, Canal Plus, and France Telecom leading declines among media and telecom stocks.
 The Xetra Dax in Frankfurt shed 76 points, or 1.1 percent, to 6,912.96, with banking stocks losing ground on the prospect of higher regional interest rates.
London's benchmark FTSE 100 index slipped 9.9 points, or 0.1 percent, to 6,035.5, with "old economy" retailing and tobacco stocks buoying the market.
The SMI in Zurich lost 0.1 percent to end the session at 7,711.7.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, fell 1.7 percent to 1,556.03, with its technology sub-index losing more than 8.5 percent and the media segment dropping 5 percent.
In midday trading Monday, the U.S. Nasdaq composite index fell 151.92 points, or 4.5 percent, to 3,238.48 amid concerns over future of interest-rate hikes. The blue-chip Dow Jones industrial average lost 1.8 percent to 10,440.09.
In the currency markets, the euro advanced slightly to $0.8988 from $0.8970 Friday on the prospect of European rate rises.
"We feel that the ECB should take inflation by the scruff of the neck and raise rates by a half percentage point," Bear Stearns analyst Steve Barrow told CNNfn.
The dollar traded at around ¥107.5 against the Japanese currency, little changed from its value in New York late Friday.
Tech meltdown in London
In London, a 14.2 percent plunge made hand-held computer maker Psion (PON) fell 14.2 percent the FTSE 100's biggest faller, followed by chip designer ARM Holdings (ARM) with a 10.6 percent drop. Internet security firm Baltimore Technology (BLM) fell 7.6 percent.
Telewest (TWT), one of Britain's biggest cable companies, lost 3 percent and regional telecom operator Kingston Communications (KCOM) dropped 9.7 percent as a new bout of nerves wiped out early gains by some telecom and technology stocks. Energis (EGS), the U.K.'s biggest carrier of Internet traffic, slid 3.8 percent and business telecom provider Colt Communications (CLM) fell 1.1 percent.
Pearson (PSON), the world's largest educational publisher and owner of the Financial Times, fell 4.2 percent, Rupert Murdoch's British Sky Broadcasting (BSY) dropped 7 percent, and financial data and news firm Reuters Group (RTR) lost 6.2 percent, while magazines and radio operator EMAP (EMA) fell 5.9 percent.
British American Tobacco surged 9 percent to 414.77 pence, leading a comeback by "old economy" stocks, after ABN Amro analyst David Ireland raised his rating on the stock to "undervalued" and predicted the shares would rise to 700 pence.
Retailers also were back in favor, with the U.K.'s largest supermarket chain Tesco (TSCO) rising 2.8 percent and second-placed J. Sainsbury (SBRY) gaining 2.7 percent. BG Group (BG-), the gas producer and pipeline operator, rose 2.5 percent.
French media stocks suffer
In Paris, the picture was similar, with telecom, technology and media stocks taking a battering. Canal Plus (PAN) became the biggest faller in afternoon trading, sliding 10.9 percent, while France's largest TV broadcaster TF1 (TFI) lost 8.8 percent.
Index heavyweight France Telecom (PFTE) depressed the market with a drop of 4.4 percent, utility and telecom conglomerate Vivendi [PAR:PEX ] fell almost 1 percent, and data network operator Equant (PEQU) lost 9.3 percent.
 Technology consultant Cap Gemini (PCAP) fell 8.4 percent and chipmaker STMicroelectronics (PSTM) shed 4.5 percent.
Construction and telecom firm Bouygues (PEN) gained more than 1 percent after a media report that Telecom Italia wanted to take a stake in the company.
Telecom equipment maker Alcatel (PCGE) lost 4.3 percent.
Engineering firm Alstom (PALS) rose 7.7 percent and automaker Renault (PRNO) climbed 1.5 percent, while defense contractor Thomson-CSF (PHO) advanced 2.2 percent and retailer Carrefour (PCA) rose 1.2 percent.
In Frankfurt, the Dax index was held back by weakness in financial stocks, with Dresdner Bank (FDRB) down 5 percent, HypoVereinsbank (FHVM) losing 3.8 percent and Commerzbank (FCBK) off 2.7 percent, amid expectations the European Central Bank will raise interest rates in the 11-nation euro-zone when it meets Thursday.
Electronic component manufacturer Epcos (FEPC) fell 7.5 percent, the biggest loser on the DAX, software giant SAP (FSAP) lost 2.8 percent and electronics heavyweight Siemens (FSIE) dropped 3.6 percent.
In Amsterdam, cable operator UPC declined 8.2 percent after the company said its planned $2.8 billion takeover of TV operator SBS had fallen through, undermined by a slump in UPC's share price. And troubled software firm Baan lost 11 percent. 
-- from staff and wire reports
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