LONDON (CNNfn) - Europe's major bourses ended down Tuesday as persistent concerns about corporate earnings plagued technology and telecom stocks, but strong demand for financials cushioned losses.
London's benchmark FTSE 100 index fell 0.7 percent to 6,213.2, following sharp falls by broadcaster Granada Media (GME) and telecom equipment maker Marconi (MNI).
 In Paris, the CAC 40 blue chip index was also down 0.7 percent at 6,294.06, with Alcatel (PCGE) and index heavyweight France Telecom (PFTE) among the biggest decliners.
Frankfurt's electronically traded Xetra Dax ended down 23.65 points, or 0.35 percent, to 6,765.04, led by Deutsche Telekom.
Amsterdam's AEX index fell 0.8 percent while Milan's MIB 30 fell 0.5 percent. The SMI was 0.6 percent lower in Zurich.
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The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, fell 0.9 percent, with its information technology sub-index down 4.4 percent.
Euro strengthens
In the currency market, the euro traded at 88.23 U.S. cents, up from 87.56 cents in late trading in New York Monday.
The European Central Bank, the U.S. Federal Reserve and the Bank of Japan are expected to join other members of the Group of Seven industrial nations to buy more euros in the coming days, Paul Meggyesi, an economist at Deutsche Bank, told CNNfn.
"It'll be two months before they can claim success," Meggyesi said. "The major problem for the euro is not speculators - it's that substantial investment and corporate funds have flowed out of Europe to the U.S." That situation "won't change overnight," Meggyesi added.
In the U.S., the Dow Jones industrial average was down 1.3 percent while the Nasdaq Composite index lost nearly 0.5 percent.
 European chipmakers and related companies fell on continued jitters triggered by Intel's (INTC: Research, Estimates) revenue warning on Thursday. German chip maker Infineon (FIFX) declined 2.2 percent while its French rival STMicroelectronics (PSTM) shed 2.5 percent.
German electronic component maker Epcos (EPC) lost 3.3 percent while its parent, Siemens (FSIE), slipped 1.8 percent. Internet consulting group Cap Gemini (PCAP) lost 2.9 percent in Paris.
French train maker Alstom (PALS) also slid 5 percent.
Telecom stocks also declined. Deutsche Telekom (FDTE) slid 4.2 percent while rivals British Telecommunications (BT-A) dropped 1.3 percent and France Telecom (PFTE) fell 2.9 percent.
Among communication equipment makers, Marconi (MNI) fell 7 percent, fiber-optic component maker Bookham Technology (BHM) lost 7.9 percent in London and France's Alcatel (PCGE) declined 5.1 percent.
 British television broadcaster Granada Media (GME) fell more than 9 percent after Merrill Lynch lowered its forecast for the company's earnings. Rival broadcaster Carlton Communications (CCM) closed 5.2 percent lower, affected by the same downgrade, traders said.
Across the region, Investors shifted out of tech stocks and into financials. Deutsche Bank (FDBK) gained 2.2 percent and Commerzbank (FCBK) rose 1.6 percent. Reinsurer Munich Re [FSE:FMUV2] rose 1.6 percent, France's Société Générale (PGLE) rose 3.5 percent, and insurer AGF (AGF) rose 2.5 percent. British bank Shroders (SDR) was 4.3 percent higher.
Shipping company Peninsular & Oriental Steam Navigation (PO-) fell 1.1 percent. The world's third-biggest cruise ship operator posted a 10 percent rise in first-half pretax profit, but said it expects a tougher business climate in the remainder of 2000 because of increasing competitive pressures. The company said the demerger of its cruise business, set to take place in October, is proceeding on schedule. 
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