LONDON (CNNfn) - Gloom continued over Europe's markets Tuesday, with major indexes closing lower as unexpectedly weak sales at cell phone maker Nokia hurt sentiment.
Nokia, the world leader in the cell-phone market, dropped 8.7 percent after saying it sold more than 128 million mobile phones in 2000, shy of analysts' forecasts of some 140 million. It had been down as much as 18.7 percent.
London's FTSE 100 index fell 61.5 points, or 1 percent, to end at 6,088.1. Vodafone Group (VOD), the world's biggest cellular phone services provider and FTSE index heavyweight, dropped 3.4 percent.
In Paris, the blue-chip CAC 40 ended down 69.61 points, or 1.2 percent, at 5,663.19, extending its slide to three consecutive days and hitting a new low since January 1999. Index heavyweight France Telecom (PFTE), the CAC index's most heavily weighted stock, led losers down 4.9 percent.
In Frankfurt, the electronically traded Xetra Dax closed up 12.35 points, or 0.19 percent, to 6,404.52. Automakers were among the biggest losers, while software firm SAP (FSAP), on the other hand, rose 9 percent, adding to the previous day's 14 percent gain.
"The major news in the market today is Nokia," said Philip Isherwood of Dresdner Kleinwort Benson. "The markets were holding up reasonably well this morning after an after-hours rally in the U.S. overnight."
The broader FTSE Eurotop 300 index, a basket of Europe's largest companies, was down 0.8 percent, with the information technology sub-index dropping 4.4 percent, largely due to Nokia's decline. The computer service and software sector jumped 3.8 percent, mainly due to SAP's gain. 
Europe's high-tech indexes were mostly higher. Germany's Neuer Markt index rose 2.95 percent and the pan-European Easdaq index tacked on 4.1 percent, while Britain's TechMark fell 0.2 percent.
Elsewhere, Amsterdam's AEX index added 0.3 percent, Zurich's SMI slipped 0.4 percent and Milan's MIB30 was 0.1 percent higher. In Helsinki, where Nokia is by far the most valuable stock in the local market, the benchmark HEX General index plunged 6.7 percent.
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U.S. markets were mixed as Europe's leading markets closed. The tech-heavy Nasdaq composite was up 1.4 percent whereas the blue-chip Dow Jones industrial average shed 0.4 percent, or 40.87 points, to 10,580.48.
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In the currency market, the euro fell against the dollar to 94.11 U.S. cents from 94.76 cents in late New York trading a day earlier.
A tale of top techs
Chip sector firms rebounded from mid-session weakness after Nokia came off its lows. Germany's Infineon Technologies (FIFX) rose 2 percent, while Netherlands-based Philips rose 1.7 percent and Dutch chip equipment maker ASM Lithography rose 4.3 percent.
"We don't trust the [telecom, media and technology] sector – there's more bad news to be announced before we get out of the woods," David Thwaites, a market strategist at BNP Paribas, said.
Nokia rival Ericsson fell 4.3 percent and German telephone operator Deutsche Telekom (FDTE) slipped 2.5 percent. But on the upside, British business services group COLT Telecom (CLM) rose 4 percent and compatriot network operator Energis (ENE) rose 4.3 percent.
Dutch network operator Equant (PEQU) rose 2.2 percent in Paris.
Among other bright spots, British software company Sage Group (SGE) rose 3.1 percent, while in Paris, technology consultant Cap Gemini (PCAP) added 1.9 percent.
French turbine maker Alstom (PALS) rose 1.8 percent, bouncing back a little from the previous day's loss after its two biggest shareholders said they would sell part of their holdings. 
In the retail world, upmarket U.K. department store chain Selfridges (SLF) rose 3.4 percent. The company reported that sales in the six weeks to Jan. 6 rose 1 percent from a year earlier, with sales at its Trafford Centre store in Manchester, northwestern England, up 22 percent.
German retailer Metro (FMEO) rose 0.4 percent. It reported sales in 2000 rose 7.1 percent, lifted by strong growth in business outside Germany.
French holiday hotspot operator Club Mediterranee (PCU) fell 8.3 percent amid disappointment its operating profit, excluding an accounting change, came in at  95 million, under the consensus estimate of research house Jacques Chahine Finance of 99 million.
Oil stocks were weak across Europe. Britain's BP Amoco (BPA) dropped 3.1 percent and France's TotalFina Elf (PFP) slipped 1.9 percent.
-- from staff and wire reports 
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