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Europe mixed, techs fall
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December 12, 2000: 12:54 p.m. ET
Techs fall after profit warning from chip maker, defense and aero stocks dip
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LONDON (CNNfn) - Europe's main markets closed mixed Tuesday, with technology stocks leading declines after U.S. chip maker Advanced Micro Devices issued a profit warning late Monday. Defense to aerospace stocks were among the biggest decliners.
The blue chip CAC 40 in Paris fell 30.22 points, or 0.5 percent, to 6,047.66, with telecom equipment maker Alcatel (PCGE) and the European Aeronautic Defense & Space Co. (PEDS) leading declines.
 Frankfurt's late trading Xetra Dax was down 0.3 percent at 6,774.84, led by chemical and drug powerhouse Bayer (FBAY) and insurer Allianz (FALZ).
London's benchmark FTSE 100 index edged up 20.1 points, or 0.3 percent, with drug maker Glaxo Wellcome (GLXO) and broadcaster Granada Media (GME) the top two gainers.
Amsterdam's AEX index fell 0.7 percent, while Zurich's SMI slipped 0.3 percent and the MIB30 in Milan dipped just 0.1 percent.
The broader FTSE Eurotop 300 index, a basket of Europe's largest companies, was down 0.5 percent, with its aerospace and defense sub-index down 4.4 percent while the computer sector shed 2.3 percent. The tobacco and oil-and-gas segments rose more than 1 percent.
U.S. markets were mixed midday Tuesday. The tech-laden Nasdaq composite index dropped 1.1 percent to 2,980.28 while the blue chip Dow Jones industrial average rose almost 1 percent higher to 10,830.84.
 click here for the biggest movers on the ftse 100 in London
 click here for the biggest movers on the dax 30 in Frankfurt
 click here for the biggest movers on the cac 40 in Paris
In the currency market, the euro was little changed at 87.75 U.S. cents from 87.76 cents in late New York trading on Monday.
Tech shares were mostly lower on European bourses, with optical component maker Bookham Technology down more than 7 percent, French phone network maker Alcatel (PCGE) declined 4.4 percent, chip designer ARM Holdings (ARM) slipped 3.4 percent, and electronic component maker Epcos (FEPC) was down 4.4 percent in Frankfurt.
U.K. software and information technology consultant Logica (LOG) dropped 6.3 percent and rival Misys (MSY) lost 5.4 percent. SAP (FSAP), Europe's largest software maker, shed 1.8 percent.
"This is just a short-term response after dramatic price increases," UBS Warburg head of European equity strategy Ian Harnett told CNNfn.com.
In the drug sector, Glaxo Wellcome (GLXO) added 4.7 percent and planned merger partner SmithKline Beecham (SB-) rose 3.6 percent. The companies said their tie-up proposal crept closer to winning U.S. regulatory backing after they pledged to sell the rights to three products.
Among other drug makers, Germany's Schering (FSCH) rose 1.7 percent, Shire Pharmaceuticals Group (SHP) lost 5.9 percent a day after the specialty drug company said it agreed to buy Canada's BioChem Pharma Inc. (BCHE: Research, Estimates).
One of the biggest decliners on the FTSE Eurotop 30 was the chemical sector, which slipped 1.9 percent, led by its biggest German components -- Bayer (BAY), which lost 4.1 percent, and BASF (FBAS), which shed 2.9 percent.
Auto shares were mixed, with DaimlerChrysler (FDCX) up 2.9 percent in Frankfurt and French rival Renault (PRNO) down 2.9 percent. French auto parts maker Valeo (PFR) slipped 2 percent.
Aerospace and defense stocks were among the biggest fallers. European Aeronautic Defense & Space Co., which owns 80 percent of Boeing Co.'s biggest rival Airbus Industrie, fell 7.2 percent, while defense company BAE Systems dropped 5.9 percent.
Germany's financial stocks were weaker. Insurer Allianz declined 1.8 percent and reinsurer Munich Re lost 1.6 percent.
In the telephone sector, Deutsche Telekom (FDTE) rose 3.7 percent, topping the DAX in Frankfurt, other stocks were slightly lower.
Media shares were also higher. Water-to-entertainment firm Vivendi Universal (PEX) rallied 4.5 percent a day after its debut in Paris following the merger of Canadian drinks and media company Seagram with French pair Vivendi and Canal Plus.
Vivendi Universal, which plans to focus on its media and telecom businesses, said Tuesday afternoon it has received two bids to buy Seagram's spirits business.
Granada Media, which operates 10 regional television franchises in Britain, jumped 4.1 percent. The British government opened the doors for consolidation in the sector with the announcement it was doing away with a 15 percent audience ceiling, which has hampered the prospects of mergers and takeovers. Rival Carlton Communications (CCM) climbed 3.2 percent.
-- from staff and wire reports 
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