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Europe ends mostly lower
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July 26, 2000: 8:12 a.m. ET
Banks dip in Frankfurt, London, rise in Paris; Sainsbury soars on earnings
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LONDON (CNNfn) - Europe's major bourses closed mostly lower Wednesday, with Frankfurt the leading loser as a parade of earnings reports and another abortive German banking merger drew investors' fire.
Frankfurt's electronically traded Xetra Dax slipped 26.92 points, 0.37 percent to 7,302.12, as top technology firms came under pressure. Dresdner Bank (FDRB) fell 2.4 percent after its $40 billion merger with Commerzbank (FCBK) collapsed. Commerzbank fell 1 percent.
London's benchmark FTSE 100 index closed down 3.6 points, or 0.1 percent, to 6,387.1 with supermarket chain J. Sainsbury (SBRY) soaring 10.4 percent after reporting stronger-than-expected first-quarter sales growth. Cable operator Telewest Communications (TWT) led losers, down 8.1 percent.
In Paris, the CAC 40 blue chip index closed up 29.09 points, or 0.45 percent, to 6,493, with banks and insurance companies leading major gainers. Index heavyweight France Telecom (PFTE) helped keep the index on the plus side, gaining 1.4 percent. The SMI in Zurich shed 0.1 percent.
The FTSE Eurotop 300, a broad index of the region's largest stocks, fell 0.35 percent to 1,625.94, with its electronics components sub-index losing 2 percent.
On Wall Street, the Nasdaq composite index and the Dow Jones industrial average each were down 0.9 percent as top bourses closed.
In the currency market, the euro rose to 94.10 U.S. cents from 93.67 cents in late trade in New York Tuesday.
Financials slump in London ...
In London, financial services stocks were among the worst performers. Mortgage lender Abbey National (ANL) dropped 3.7 percent despite posting a 5 percent increase in first-half profit to £922 million, towards the top end of the range of analysts' expectations.
Rival Alliance & Leicester (AL) slipped 3.4 percent and Halifax (HFX) fell 5.5 percent. Bank Lloyds TSB (LLOY) fell 2.6 percent.
Insurer Prudential PLC (PRU) shed 3 percent. Outside the FTSE 100, Prudential subsidiary Egg (EGG), Britain's first publicly traded Internet bank, slipped 5.2 percent after reporting a larger-than-expected first half net loss.
Exceptions to the general weakness in financial services were insurer Legal & General [LSE: LGEN], which rose 2.3 percent after posting a 19 percent rise in first-half profit; British Airways (BA-), up 3 percent; and information technology firm Sema Group (SEM), which added 3 percent.
Business services company Capita Group (CAP) fell 4.3 percent.
... but rally in Paris
Financial sector shares took over the lead in Paris after a rally for top technology issues flared out. Société Générale (PGLE) led gainers, adding 3.8 percent. Larger rival BNP Paribas (PBNP) rose 0.9 percent while insurer Axa (PCS) rose 2.4 percent. 
Cosmetics maker L'Oréal (POR) added 2.9 percent.
Tech shares turned down, with Cap Gemini (PCAP) falling 2.2 percent after rising by as much earlier in the session. Networking gear maker Alcatel (PCGE) fell 2 percent, defense electronics company Thomson-CSF (PHO) shed 2.3 percent and telecommunications and construction firm Bouygues (PEN) fell 1.5 percent.
The French auto sector was weak for a second day, with PSA Peugeot Citroen (PUG) down 0.8 percent and rival Renault (PRNO) off 0.6 percent.
Techs tumble in Frankfurt
In Frankfurt, better-than-expected earnings reports couldn't keep tech shares from retreating.
Chipmaker Infineon Technologies (IFIX) fell 4.5 percent and Infineon's parent, electronics and engineering firm Siemens (FSIE), slipped 4.1 percent. Siemens said third-quarter profit more than doubled to  832 million, beating analysts' expectations, and signaled its full-year profit could rise some 60 percent to around 3 billion. Infineon, 71 percent owned by Siemens, said net income in the three months through June 30 soared to 266 million from 31 million a year earlier as sales leapt by two-thirds.
Electronic components maker Epcos (FEPC) fell 3.7 percent and software company SAP (FSAP) dropped 2.4 percent.
Other banks got hit in addition to Dresdner and Commerzbank. A source close to insurer Allianz (FALV), which owns more than 20 percent of Dresdner, told CNNfn.com the merger fell apart over Dresdner's demand to have a 60 percent stake in the merged bank. Shares of Allianz shed 1.9 percent.
Among rivals, Deutsche Bank (FDBK) fell 3 percent and HypoVereinsbank (FHVM) dropped 0.7 percent.
Retailer Metro (FMEO) was the top gainer on the Dax, up 3.6 percent. Index heavyweight Deutsche Telekom (FDTE) added 1.9 percent and steel maker Thyssen Krupp (FTHY) rose 2.2 percent. 
In the auto sector, shares of DaimlerChrysler (FDCX) rose 1.5 percent despite an earnings warning, while Volkswagen (FVOW) added 1.6 percent.
In Amsterdam, shares of Internet service provider World Online fell 8.2 percent after reporting a larger-than-expected loss in the second quarter. Dealers also were skeptical about the company's plans to change strategy from that of an ISP to a provider of Internet Protocol services.
But shares of compatriot Baan jumped 6 percent after Britain's Invensys (ISYS) agreed to buy the embattled Dutch software maker, dropping its earlier insistence that it win 95 percent of shareholder votes. 
-- from staff and wire reports
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