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Techs switch off Europe
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August 11, 2000: 12:16 p.m. ET
Technology, media and telecom stocks power down in Nasdaq wake
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LONDON (CNNfn) - Europe's major markets closed mixed in choppy trade Friday, with technology and telecom stocks sliding as the tech-heavy U.S. Nasdaq market continued its decline.
The CAC 40 in Paris fell 9.34 points, or 0.1 percent, to 6,553.00, led by chip maker STMicrolectronics (FSTM) and telecom equipment maker Alcatel (PCGE).
London's FTSE 100 index trickled down 2.8 points to 6,384.5. Leading the loser board in London were chip designer ARM Holdings (ARM) and optical component maker Bookham Technology (BHM).
Frankfurt's Xetra Dax index rose 42.01 points, or 0.58 percent, to 7,322.92. Insurer Munich Re (FMUV) and drug maker Bayer (BAY) led the gains.
The SMI in Zurich gained 0.4 percent.
The FTSE Eurotop 300 index, a basket of some of Europe's largest companies, rose 0.3 percent, with its mining components up more than 4 percent after Rio Tinto (RIO) won control of Australian rival North in its A$3.5 billion takeover offer. Rio Tinto rose 3.1 percent, rival Billiton (BLT) jumped 5.1 percent to top the leaders board in London, while Anglo American gained 3.2 percent.
Stocks were mixed on Wall Street at the bourses' close. Technology stocks continued their declines, spurred by a lower-than-expected revenue report from Dell Computer, driving the Nasdaq composite down more than 0.2 percent. The blue-chip Dow Jones industrial average jumped 120.87 points, or 1.1 percent, to 11,029.63.
In the currency market, the euro edged up to 90.84 U.S. cents from 90.74 cents in New York trading Thursday.
Technology and media stocks were weaker in London. Chip designer ARM Holdings (ARM) fell more than 7 percent, media firm Pearson (PSON), which owns the Financial Times, declined 6.3 percent, and news and financial data company Reuters (RTR) fell 2.2 percent.
FTSE heavyweight Vodafone AirTouch (VOD), the world's largest mobile phone service provider, dropped 1.8 percent and optical components maker Bookham Technology (BHM) led the market down, falling 8.2 percent.
Internet service provider Freeserve (FRE) declined 3.6 percent, while its parent, consumer electronics retailer Dixons (DXNS), fell almost 6 percent.
In Paris, CAC 40 heavyweight France Telecom (PFTE) fell 0.5 percent, telecom equipment maker Alcatel (PCGE) declined 2.7 percent and computer service firm Cap Gemini (PCAP) fell 3.3 percent, to register the biggest decline in Paris. Chip maker STMicroelectronics (PSTM) fell 2.9 percent.
Among the tech losers on the Dax, technology company Siemens (FSIE) fell 2.9 percent, its electronics component subsidiary Epcos (FEPC) dropped 1.8 percent and its chip making subsidiary Infineon Technology (FIFX) was down 1.1 percent.
Drug stocks rebounded from the previous session's losses, when they were hit by a U.S. appeals court decision Wednesday that set an earlier-than-expected end to Indianapolis-based Eli Lilly 's (LLY: Research, Estimates) exclusive right to sell Prozac, the antidepressant drug.
Britain's Glaxo Wellcome (GLXO) climbed 1.7 percent, merger partner SmithKline Beecham (SB-) also rose 1.6 percent, biotechnology firm Celltech (CCH) gained 4 percent, and Germany's Bayer (BAY) added 2.3 percent.
German insurer rose, with Munich Re (FMUV) gaining 1.8 percent and rival Allianz (FALV) climbing 1.2 percent.
Banking stocks fell. Deutsche Bank (FDBK) lost 1 percent, Commerzbank (FCBK) slipped 2.2 percent and HypoVereinsbank [FSE:F ] declined 1.3 percent.
In London, shares of Woolwich (WWH) rose 1.2 percent after Britain's fourth-largest bank, Barclays (BARC), agreed to buy the U.K. mortgage bank for about £5.4 billion ($8.1 billion) in cash and stock. Shares of Barclays fell 0.7 percent. Woolwich rival Abbey National (ANL) jumped 2.7 percent.
But Barclays' rivals also fell. Lloyds-TSB (LLOY) dropped 1.6 percent, and Royal Bank of Scotland (RBOS) slipped 1 percent.
Shares in Europe's biggest steel maker, Anglo-Dutch Corus (CS-), dropped 5.8 percent to a 20-month low as Schroder Salomon Smith Barney tried to find a buyer for a 4.13 percent stake, or 129 million shares, in the company. 
-- from staff and wire reports
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