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Europe ends lower
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November 27, 2001: 11:47 a.m. ET
Stocks extend losses after data, Nokia slides
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LONDON (REUTERS) - Stocks slumped in Europe on Tuesday after a double disappointment from tech leader Nokia's cautious outlook, and a surprising dip in U.S. consumer confidence, lynchpin of the world's biggest economy.
London's FTSE 100 slipped 0.8 percent to 5,261.4 and the CAC 40 blue chip index fell 1.7 to 4,485.8, while Frankfurt's electronically traded Xetra Dax dipped 2.4 percent to 4,490.7.
Investor mood soured as the two-month 25-percent bounce in European shares since their three-year lows on September 21, ran out of steam.
The FTSE Eurotop 300 index was down 1.3 percent at 1,239 points by 1630 GMT when most bourses were shut. Declining issues outnumbered advancers by nearly three-to-one.
The Euro Stoxx 50 index of euro zone blue chips has shed 2.2 percent to 3,670 points.
All sectors apart from energy, which was buoyed by firmer crude oil prices, joined in the retreat.
Technology was weakest, down 3.5 percent as Nokia headed south. Autos were also down sharply as investors grabbed profits in heavyweight leader DaimlerChrysler after it flew higher in the prior two sessions.
Oils like BP were among the few blue chip advancers, the sector helped by higher oil prices after Russia said it would consider a bigger oil export cut by January.
Nokia said it would reach its fourth-quarter earnings targets, but cut its forecast for industry handset sales for 2001, and gave a cautious forecast for next year.
The Finnish firm said it expected to sell 380 million handsets this year, compared with an earlier forecast of 390 million, with industry sales of 420-440 million globally, instead of 420-460 million forecast by U.S. rival Motorola.
Nokia shares, which have nearly doubled since their multi-year lows of early-September, shed 6.3 percent to 26.45 euros.
European peers Siemens of Germany, Alcatel of France, and Ericsson of Sweden also fell, but less sharply.
Wall Street tumbled on news from the Conference Board that its U.S. consumer confidence index fell for the fifth straight month in November to 82.2, its lowest level in more than seven years. It was forecast to rise to 87.9.
As most bourses shut in Europe, the Dow Jones industrial average was down 112 points, or 1.1 percent at 9,869. The Nasdaq Composite had shed 1.3 percent to 1,916 points.
The Board said rising unemployment was hitting confidence. The consumer accounts for two-thirds of U.S. economic activity, and is closely watched.
Europe's Internet Service Providers were among the top mid-cap losers.
Wanadoo slumped 14.4 percent after Britain's Dixons Group electrical retailer cut its stake in the French ISP.
Elsewhere in the sector, Germany's T-Online fell 8.9 percent, and Italy's Tiscali was down 8.2 percent.
Anglo-Norwegian engineering firm Kvaerner tumbled 26 percent after failing on Monday to agree a longer-term bailout with its top shareholder after winning new cash to bolster its finances short-term.
Airtours shares rose 4.7 percent after Britain's biggest holiday firm reported a 57 percent rise in annual operating profit but warned its outlook was uncertain and that 1,600 jobs have been cut since September 11.
Shares in Europe's largest travel firm Preussag, which posts results on Thursday, fell 4.7 percent.
Shares in Britain's home improvements and electronics retailer Kingfisher rose three percent after the group restored its deal-making credentials by taking a strategic stake in Germany's third-biggest DIY player Hornbach Holding.
Insurers were hit after Allianz said it would issue 1.2 billion euros ($1.06 billion) of bonds exchangeable into shares of utility RWE to help finance Allianz's acquisition of Dresdner Bank earlier this year. 
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