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Europe mixed, techs slide
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September 12, 2000: 12:52 p.m. ET
Tech, telecom shares come under pressure; Drugs lift Paris bourse
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LONDON (CNNfn) - Europe's main markets were mixed at the close Tuesday, with technology, media and telecom stocks suffering further declines, though many trimmed earlier losses as the tech-heavy Nasdaq market traded in buoyant mood. Drug stocks also kept indexes from tumbling further.
London's benchmark FTSE 100 index shed 0.4 percent to 6,555.5. Biotech firm Celltech Group (CCH) slid 5.1 percent as analysts said the lack of news on products in development was a disappointment even after the company matched the most optimistic earnings estimates by posting a first-half profit of £10.1 million ($14 million), excluding one-time costs, up from a loss a year ago.
Frankfurt's Xetra Dax fell 78.70 points, or more than 1 percent, to 7,135.75, with automaker DaimlerChrysler (FDCX) off 2.7 percent after Deutsche Bank cut its forecast for the company's full-year earnings, citing an expected third-quarter loss in the company's U.S. Chrysler operations.
 The blue-chip CAC 40 in Paris rose 0.3 percent to 6,697.80, with drug maker Aventis (PAVE) climbing 3.8 percent and rival Sanofi-Synthelabo [PAR:PSAN ] adding 3.3 percent.
Among other leading European markets, Zurich's SMI index fell 0.7 percent and Milan's MIB30 index slipped 0.2 percent. The AEX in Amsterdam fell 0.8 percent, with chip equipment firm ASM Lithography down 3.1 percent.
The broader FTSE Eurotop 300 index, a basket of Europe's largest companies, fell 0.5 percent, with its computer services segment down 1.9 percent, as the U.K.'s software and IT consultant Misys (MYS) fell 4 percent, local rival CMG (CMG) dipped more than 2 percent and France's Cap Gemini (PCAP) lost 0.7 percent.
Index shake-up hits telecoms
Natalie Monnoyeur, an equity strategist with Crédit Lyonnais Securities in Paris, said lingering weakness for Europe's common currency and continued upward pressure on crude oil prices have unsettled investors. "Obviously there is some risk coming into this market," Monnoyeur said.
Monnoyeur noted that some selling in the telecom sector stemmed from imminent changes set to be introduced to the Dow Jones Stoxx European share indexes. The indexes are about to change their composition to reflect the value of each company's publicly traded shares, rather than its entire market capitalization. Some large telecom companies such as France Telecom (PFTE) and Deutsche Telekom (FDTE) will see their Stoxx index weightings fall. Each company continues to be part-owned by its national government.
U.S. markets rose Tuesday. The Dow Jones industrial average climbed 0.1 percent, while the Nasdaq composite rose 1.6 percent to 3,958.36.
In the currency market, the euro slipped against the dollar to 86.05 U.S. cents from 85.78 cents in late New York trading Monday. The currency's record low is 85.53 cents, registered in Asia Tuesday.
European Central Bank President Wim Duisenberg said Tuesday that high oil prices and a weak euro are "cause for concern" as they feed inflation, but insisted the currency's slump defies economic fundamentals.
At the same time, the British pound fell to a new 14-year low against the dollar at $1.3945. A retail price report showed Tuesday that the U.K.'s underlying annual inflation rate fell to 1.9 percent in August from 2.2 percent the previous month, equaling the lowest rate on record. The benign inflation rate suggested the Bank of England might not see the need to raise interest rates anytime soon.
Telecoms hung up
On European exchanges, French network equipment maker Alcatel (PCGE) slipped 1.2 percent while Dutch-based network operator Equant (PEQU) shed 1.3 percent and U.K. counterpart Energis (EGS) fell 3.2 percent.
 British telecom operator Cable & Wireless (CW-) fell 5 percent, British Telecommunications (BT-) dipped 1 percent and cable operator Telewest Communications (TWT) slipped 4.3 percent.
London media stocks drooped. Music publisher EMI Group (EMI) shed 5.2 percent. A source told Reuters that European Union antitrust officials were asking for more information about its planned music joint venture with CNN's parent, Time Warner Inc. (TWX: Research, Estimates).
U.K. advertising agency WPP (WPP) dropped 5.9 percent.
Road haulage and logistics firm Exel (EXL) fell 4.5 percent as petrol pumps across Britain began to dry up. Peninsular & Oriental Steam Navigation Co. (PO-) sank 4.1 percent on concern rising crude oil prices will dent profits.
Europe's drug sector was stronger. Britain's AstraZeneca (AZN) rose 3.6 percent while Glaxo Wellcome (GLXO) climbed 3.4 percent and merger partner SmithKline Beecham (SB-) also added 3.4 percent, while Germany's Schering (FSCH) added 1 percent.
 Germany's Dresdner Bank (FDRB) slipped 2.7 percent after a report said the No. 3 German bank is in talks to buy New York investment bank Wasserstein Perella & Co. for between $1.2 billion and $1.5 billion. Cross town rival Deutsche Bank (FDTE) slipped 4.4 percent.
Germany's SAP [FSE:FSAP3], Europe's biggest software maker, slumped 3 percent. SAP is the majority owner of software consultancy SAP SI, which priced its initial public offering at  19, at the top end of the previously indicated range. SAP SI shares start trading Wednesday on Frankfurt's Neuer Markt.
Chipmaker Infineon Technologies (FIFX) lost 1 percent and French counterpart STMicrolectronics (PSTM) lost 1.6 percent. 
-- from staff and wire reports
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