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Europe sharply lower
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March 14, 2001: 12:15 p.m. ET
Bourses recoup earlier losses but broad-based decline plunges Europe into red
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LONDON (CNN) - Europe's main markets closed sharply lower on Wednesday, although markets recouped earlier losses as Wall Street's rout was short-lived.
London stocks, which plumbed a two-year closing low on Tuesday, fell further. The FTSE 100 index fell 1.7 percent, or 94.8 points, to 5,625.9, with Internet data carrier Energis (EGS) diving 13 percent.
In Frankfurt, the late trading Dax index slid 2.1 percent, or 128.05 points, to reach 5,834.88, after sliding more then 4 percent before the U.S. markets opened. Autos stocks, BMW and Volkswagen, were the biggest percentage losers.
France's CAC 40 fell 1.4 percent, or 71.37 points, to 5,115.50, after falling setting a new 17-month low of 4,978.07 earlier in the session. Again, auto stocks ran up the biggest losses.
One of the leading casualties was Cable & Wireless (CW-), which issued a profit warning on Tuesday, and dived 20 percent. It fell a further 13 percent on Wednesday.
In other European markets, Zurich's SMI slid 2.1 percent and Amsterdam's AEX fell 1.5 percent. The MIB 30 in Milan fell 1.2 percent.
The FTSE Eurotop 300, a broad measure of Europe's blue chips, fell 1.5 percent, with its auto and banking stocks components falling more than 2 percent. Many technology stocks pared earlier losses.
U.S. stocks fell on Wednesday midday, with the Dow Jones industrial average hovering around the important psychological 10,000 mark. It slid 205.71 points, or 2 percent, to 10, 085.09, while the tech-laden Nasdaq Composite slipped 8 points, or 0.4 percent, to 2,006.75.
In the currency market, the euro traded at 91.26 U.S. cents, down just a fraction from 91.52 cents in late New York trading on Tuesday. The single European currency hit a two-week low against the dollar on Tuesday.
European banking sector came under pressure after U.S. investment bank Goldman Sachs lowered its 2001 earnings per share forecasts and
price targets on three German banks, Deutsche Bank (DBK), Dresdner Bank (FDRB) and Commerzbank (FCBK). Deutsche Bank fell more than 4.8 percent, Dresdner declined 0.5 percent and Commerzbank lost 1.6 percent.
Global banking giant HSBC (HSBA) fell almost 5 percent on worries about Japan's ailing economy and stock market plunge to 16-year lows. HSBC has a large exposure to Asia's economies. Standard Chartered (STAN), another which earns the majority of its profits in the Asia-Pacific region, dropped 3.2 percent.
Stocks in focus in Europe on Wednesday included the continent's largest chemicals firm, Germany's BASF (FBAS). The company reported a 15 percent advance in annual earnings, in line with predictions, and the shares dipped 3.4 percent.
Automotive stocks continued their slide after the announcement on Tuesday that European new car registrations fell 8.7 percent in February. Volkswagen (FVOW), Europe's biggest automaker, fell 5.7 percent, BMW (FBMW) fell 5.8 percent and the world's fifth biggest automaker, DaimlerChrysler (FDCX), dropped 4.1 percent.
In Paris, PSA Peugeot-Citroen (PUG) declined 4.2 percent and Renault (PRNO) dipped 6.7 percent, while auto parts maker Valeo (PFR) slid 5.6 percent.
Technology stocks rebounded from huge losses earlier in the session. Vodafone (VOD), the world's biggest mobile phone company, rose 1.6 percent, chip maker STMicroelectronics (STM) rose 3.3 percent and German rival Infineon Technologies (FSTM) dipped 3.2 percent, while software company SAP (FSAP) dropped 3.6 percent.
Engineer Smiths Group (SMIN) rose 4.5 percent after saying it would sell its automotive business. 
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