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European markets end lower
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February 5, 2002: 1:01 p.m. ET
Techs, telecoms and media fall; Wall Street lower on profit jitters, economic data
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LONDON (CNN) - European markets ended down on Tuesday, led by tech, telecoms and media stocks as Wall Street lost ground after poor U.S. economic data.
Those declines in both sides of the Atlantic were aggravated by weak earnings and growing concerns over corporate accounting practices.
London's FTSE 100 fell 1.4 percent to 5,093.4 and the CAC 40 blue chip index in Paris lost 2 percent to 4,307.75, while Frankfurt's electronically traded Xetra Dax slid 1.6 percent to 4,905.48 in late trading, with the German exchange set to close at 1900 GMT.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was down 1.8 percent, with the IT, telecom, computer services and media sectors among the decliners.
Telecom operators extended the previous sessions losses on continued concerns about their ability to pay debts. Cable & Wireless (CW-), a UK-based Internet data and telecoms company, dropped 3.6 percent, but off its session lows.
Investment bank Bear Stearns said consensus forecasts for second-half profit are too high and the company is likely to issue profit warning in its statement for the full-year results to March 2002.
France Telecom (PFTE), the country's dominant phone operator, was down 0.6 percent - but off its session lows -- amid continued concerns about its ability to cut its debt mountain. Deutsche Telecom (FDTE), Europe's biggest telecoms company by sales, dropped 1.4 percent in late trading.
British mobile phone operator mmO2 (OOM) fell 3 percent after it said it was cutting another 1,900 jobs in the UK and Germany, as sales slumped in the sector. Vodafone Group (VOD), the world's largest mobile phone operator, fell 3.9 percent in London.
Telecom operators were also lower, with Europe's fourth-biggest telecom equipment maker Alcatel (PCGE) falling 5.2 percent.
Finland's Nokia, the world's biggest maker of mobile phones, plunged 7 percent in Helsinki. It was also hit by news that one of its suppliers, Finnish electronics group Elcoteg, said its sales would remain weak in the first half of this year. Sweden's Ericsson, the biggest supplier of wireless infrastructure and also an Elcoteg customer, declined 2.2 percent.
French software company Dassault Systemes (DAST) was the biggest loser in Paris, falling 8 percent after traders said the company's growth forecast was too conservative.
EMI (EMI), the world's third-largest music group, closed down 6.4 percent after it issued its second profit warning in six months. The company said profit before tax and one-time costs for the year ending March 31 is expected to be about £150 million ($214 million). Analysts had estimated a profit of between £160 million and £207 million, said EMI. Vivendi Universal (PEX), Europe's biggest media company, slid 5 percent in Paris.
P&O Princess Cruises (POC) ended up 0.4 percent after it said bookings rebounded in the fourth quarter. On Monday, the company's board called on shareholders to reject a revised hostile bid from rival Carnival.
British engineering company Invensys (ISYS) was the top loser in London, falling 8 percent on concerns that it could soon issue new shares to help pay down its mountain of debt.
Among Europe's smaller markets, Amsterdam's AEX index lost 2 percent, while Milan's MIB30 index fell 1.7 percent and the SMI in Zurich dipped 1 percent.
In the U.S. on Tuesday, U.S. stocks were lower in early trading after a warning from a major telecom gear maker and data showing weakness in the services sector.
Ciena (CIEN: down $0.55 to $9.57, Research, Estimates) said it expects to lose between 19 cents and 22 cents a share, compared with analysts forecasts of a loss of 11 cents per share. Adding to the negative tone of the session was a report by the Institute of Supply Management showing the index for January fell to 49.6 percent from 50.1 percent in December.
Meanwhile, the fallout from Enron's collapse continued to drag down shares in companies with complicated accounting practices, such as Tyco International (TYC: down $6.65 to $23.25, Research, Estimates).
The Nasdaq composite index was down 10.35 points, or 0.6 percent, at 1,845.18, while the Dow Jones industrial average lost 9.9 points, or 0.1 percent, to 9,677.19. 
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