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Europe hit by drugs, techs
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June 22, 2000: 10:13 a.m. ET
Bourses slip as Roche warning outweighs spike in oil stocks
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LONDON (CNNfn) - Europe's major stock markets all ended lower Thursday as drug and technology shares fell back, outweighing a strong performance from the region's oil and gas producers.
Energy stocks had provided momentum for most of the sessions in London and Paris after OPEC members agreed Wednesday to raise output by only a modest amount, prompting expectations that oil prices would stay high.
However, drug shares weakened across Europe as Swiss pharmaceuticals maker Roche Holdings warned that first-half sales growth was slowing, sending its shares 5 percent lower.
 London's benchmark FTSE 100 index ended 0.66 percent lower at 6,434.8, slipping back in the last hour of trade following a weak start on Wall Street.
The CAC 40 in Paris closed 0.24 percent lower at 6,474.8 having spent most of the session in the black before declines in industrial and drug shares dragged it to a lower close.
Frankfurt's Xetra Dax, lacking an oil component, fell 46.42, or 0.65 percent, to 7,053.67.
 The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was 0.3 percent lower at 1,610.62, with its oil and gas sub-index up 2.7 percent, while drug shares slipped 1.1 percent and tech stocks lost 2.5 percent.
The Nasdaq composite index was 1.6 percent lower at the close of business in Europe while the Dow Jones industrial average was down 1.3 percent.
In the currency market, the euro lost ground against the dollar and the yen slipped around 1 percent to ¥99 on expectations that Japanese monetary policy will be tightened.
The single currency recovered some ground against the dollar, reaching 94.10 U.S. cents after earlier falling below 94 cents from 94.52 cents in late trading in New York Wednesday.
London hit by late telecom sell-off
In London, the FTSE 100 had climbed as high as 6,530 as its heavyweight oil shares advanced, but a late slump in telecom stocks sent it sliding to a lower close.
British Telecommunications (BT-A) closed down 4.7 percent while Vodafone AirTouch (VOD) shed 1.2 percent.
In the U.K. drug sector, Glaxo Wellcome (GLXO) shed 1.5 percent and its merger partner SmithKline Beecham (SB-) retreated 1.6 percent in the wake of the Roche announcement.
 BP Amoco (BPA), the FTSE's second-most heavily weighted stock, ended 1.8 percent higher, well off its earlier peak, but third-ranked Shell Transport and Trading (SHEL) shed its early advance to close almost 1 percent lower.
Among tech shares, computer-services provider Misys (MS) rose 4.7 percent while software maker Sage Group (SGE) lost 6.7 percent to bring up the FTSE 100's rear, and support-services firm Hays (HAS) continued its recent slide with a 4.4 percent decline.
Music publisher EMI (EMI) topped the FTSE 100 with a 10.6 percent gain following a late rally.
Insurance stocks provided some lift, with Royal & Sun Alliance (RSA) up 6.2 percent and Prudential 2.7 percent higher, while mortgage bank Halifax (HFX) added 5.1 percent after two sessions of decline.
Paris techs fall, Vivendi recovers
In Paris, French life-sciences firm Aventis (PAVE) fell 3.5 percent, tech consultant Cap Gemini (PCAP) lost 4.7 percent, and chip maker STMicroelectronics (PSTM) fell 3.2 percent.
Food maker Danone (PBA) slid 4.3 percent as it was reported to be among a clutch of firms bidding for U.S. rival Nabisco Holdings (NA: Research, Estimates).
Supermarket operator Casino (PCA) lost 2.1 percent and rival Carrefour (PCO) shed 1.1 percent.
Media and utility firm Vivendi (PEX) continued to rebound, gaining 3.7 percent after announcing plans to merge its energy-services unit with that of state-owned Electricité de France.
 Vivendi's merger partner, Canal Plus (PAN), Europe's biggest pay-TV company, rose 2.9 percent. Vivendi this week agreed to pay roughly $51.5 billion for Canadian entertainment and beverage company Seagram (VO: Research, Estimates) and the 51 percent of Canal Plus that it doesn't yet own.
TotalFinaElf (PFP) added 3.5 percent after OPEC's announcement, extending earlier gains.
France Telecom (PFTE) also buoyed the index with a 0.5 percent gain, while phone equipment maker Alcatel (PCGE) advanced 1 percent.
Terra Networks surges
In Frankfurt, retailer KarstadtQuelle (FKAR) slumped 4.3 percent, its third sharp decline in as many days, while electronic components maker Epcos (FEPC) was 5.9 percent lower.
Retailer Metro (FMEO) reflected the weakness in the sector with a 5.4 percent slide while  software publisher SAP [FSE:FSAP3] was down 1.6 percent having earlier been more than 2 percent higher before the U.S. market open.
In smaller markets, the Ibex 35 in Madrid rose 2 percent, lifted by a 3 percent rise in Internet service provider Terra Networks. Parent Telefónica ended just 1 percent ahead having been 4 percent higher at one point while oil and gas firm Repsol-YPF added less than 1 percent, also below its earlier peak. 
-- from staff and wire reports
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