|
European markets end lower
|
 |
January 30, 2002: 1:21 p.m. ET
Computer services, IT stocks fall on profit woes, weak start on Wall Street
|
LONDON (CNN) - European markets ended lower on Wednesday as concerns over corporate profits and a negative start on Wall Street pressured stocks.
London's FTSE 100 slipped 0.8 percent to 5,089.3 and the CAC 40 blue chip index in Paris lost 1.5 percent to 4,407.27 while Frankfurt's electronically traded Xetra Dax was down 1.2 percent to 5,025 in late trading (the German exchange closes at 1900 GMT).
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was down 1.2 percent, with the computer services, IT and media sectors among the decliners.
One of the biggest lowers on Wednesday was ABB, Europe's biggest electrical engineering company, with saw its shares plunge nearly 10 percent in Zurich. The company expects to post a loss for 2001 after setting aside $470 million for U.S. legal claims related to asbestos.
Orange, Europe's third-largest mobile phone operator, dropped 2.5 percent in Paris. German power group E.ON plans to sell about 103 million shares in Orange on the market after February 26, said France Telecom, the parent of Orange. France Telecom (PFTE), the top loser in Paris, fell 5.3 percent.
UK telecom giant Cable & Wireless (CW) topped the losers board in London. It fell 7.7 percent as the fallout continued from U.S. telecom group Global Crossing's decision to file for bankruptcy protection on Monday. Germany's Deutsche Telekom [FSE: DTEGn] was off 0.9 percent in late Frankfurt trading.
However, UK telecom BT Group (BT) was the biggest gainer in London, jumping 3.5 percent. Investors piled into the stocks after it fell to a 10-year low in the morning.
Among other closely watched European stocks, Finland's Nokia, the world's biggest maker of mobile phones, fell 4 percent in Helsinki, while Ericsson, the world's biggest supplier of high-speed mobile phone networks, slipped 1.1 percent in Stockholm.
German computer software giant SAP (SAPG) was down 3.2 percent in late trading in Frankfurt, after notching up earlier gains following an announcement that its software consultancy SAP SI posted a 5-percent drop in fourth-quarter earnings.
French media stocks were in the limelight after the nation's top commercial television station TF1 (PFTI) and its rival M6 posted disappointing results overnight. TF1 fell 5.2 percent, while M6 was down 2 percent in Paris.
Vivendi Universal (PEX), Europe's biggest media company, was down 4.9 percent.
Deutsche Bank [FSE:DBKGn] was down 3.4 percent in late trading after announcing a shake-up in its management structure, which will see the number of board members reduced and more power given to the chief executive. The bank reports its 2001 results on Thursday.
French industrial gas group Air Liquide (AIRP) was the top gainer in Paris, rising 2.5 percent, one day after reporting an 8.4-percent fall in sales in the fourth quarter.
Among Europe's smaller markets, Amsterdam's AEX index fell 1.6 percent and Milan's MIB30 index slipped 0.8 percent, while the SMI in Zurich lost 1.8 percent.
In the U.S. on Wednesday, stocks were lower at midday as investors awaited a decision by the U.S. Federal Reserve on interest rates at 1915 GMT. The Federal Open Market Committee is likely to end one of the most aggressive interest rate cutting campaigns and leave short-term interest rates on hold at a 40-year low of 1.75 percent.
U.S. investors were also faced a new round of questions about corporate accounting. Tyco International (TYC: down $1.50 to $32.15, Research, Estimates) and Williams Cos (WMB: down $2.91 to $15.87, Research, Estimates) . continued to fall after Anadarko Petroleum (APC: down $2.16 to $45.24, Research, Estimates) became the latest company to restate profits, and CompuCredit Corp. (CCR: up $0.16 to $39.68, Research, Estimates) said it may have to downwardly revise its results.
These events overshadowed positive news on Wednesday, as the government reported the recession-hit U.S. economy expanded 0.2 percent in the fourth quarter of 2001, indicating a recovery is under way.
The Nasdaq composite index was down 22.56 points, or 1.2 percent, to 1,870.43, while the Dow Jones industrial average lost 21.26 points, or 0.2 percent, to 9,596.98. 
|
|
|
|
|
|
|
