LONDON (Dow Jones) - European markets slipped lower on Thursday, hurt by lowered outlooks from France Telecom and Alcatel as well as concerns about corporate health across the Atlantic.

Amid a flood of corporate news on the Continent, the German DAX Xetra 30 index slipped 0.7% at 4,868, the French CAC-40 index declined 0.7% at 4,382 and the U.K. FTSE 100 index lost 0.5% at 5,203.

The Dow Jones Stoxx 600, a pan-European stock market index, was recently down 0.5% at 285.48.

The euro was recently 0.5% higher at $1.2111 versus the dollar.

U.S. stock markets also added pressure to Europe by closing lower on Wednesday, after an attempt at a rally was thwarted by worries over higher borrowing costs and disappointing earnings from Boeing Co., Amazon and Anheuser- Busch Cos.

General Motors added to overnight concerns as rumors that it would file for bankruptcy protection, but U.S. Treasurys and Japanese government bonds saw gains pared after GM denied the speculation.

Back in Europe, some companies were under pressure after slashing targets.

France Telecom (FTE) slid 4.1% lower after it cut its sales growth outlook for the year to a 3% rise versus an earlier forecast of between 3% and 5%, and reported a third-quarter sales rise of 3.8% to 12.26 billion euros ( $14.8 billion ), slightly lower than analysts' expectations.

And telecommunication equipment maker Alcatel SA (ALA) dropped 5.2%, also in Paris, after it cut its operating margin growth outlook for the year to 9% from an earlier forecast of 10%, while reporting a 36% rise in third-quarter net profit to 266 million euros .

Supermarket and catering group Royal Ahold (AHO) tumbled 7% in early European trade, after reporting below consensus third-quarter sales rise of 0.7% to 10.3 billion euros, with analysts blaming the group's U.S. retail operation.

Earnings from oil giant Royal Dutch Shell (RDSA) on the other hand, provided some relief in London .

The company rose 1.4% after it said that third-quarter cost of current supplies earnings rose 68% to $7.37 billion on higher oil and gas prices as well as divestments, some $2 billion above consensus forecasts, though it noted that 2006 production will come in at the lower end of previous forecasts.

(END) Dow Jones Newswires

10-27-05 0700ET Copyright (c) 2005 Dow Jones & Company, Inc. Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.