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European slide continues
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September 2, 1999: 10:16 a.m. ET
Banks, telecoms pull back bourses as U.S. markets accelerate decline
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LONDON (CNNfn) - European markets lost even more ground Thursday afternoon after Wall Street opened with a three-digit slide.
London's FTSE 100 was down 83 points, or 1.32 percent, at 6,193.1 in mid-afternoon, adding 20 points to the loss after U.S. markets opened.
Frankfurt's Xetra Dax remained the worst-hit market as banking and telecom stocks provided a focus for sellers. The Dax skidded 113 points, or 2.13 percent, at 5,317.12.
The CAC 40 in Paris fared little better, losing 83 points, or 1.8 percent, to hit 4,550.07. The SMI in Zurich was a little firmer, down 1 percent at 7,023.4. Smaller markets also suffered, with Amsterdam down 1.3 percent and Madrid falling 1.6 percent.
The FTSE Eurotop 300, a broader index of the largest pan-European shares, reflected the downbeat mood as it shed 1.76 percent at 1,285.46. Telecom shares were off 2.8 percent while bank shares fell 2.2 percent.
Telecoms pulled the FTSE 100 lower, with Vodafone AirTouch (VOD) off 3.1 percent and British Telecommunications (BT.A) down 2.9 percent after announcing a round of retail price cuts.
With three decliners for every one gain, the index was further weighed by the slide in banking stocks, as fears of higher U.S. interest rates dented sentiment.
Bank of Scotland (BSCT) was worst hit with a 4.8 percent decline. HSBC Holdings (HSBA) lost 2.7 percent after it said its merger with Republic New York may take longer to complete because of a probe into a Republic unit.
Lloyds (LLOY) slipped 3 percent and Barclays (BARC) lost 2.6 percent.
Computer services group Miysys (MSY) made the largest advance, up 4.3 percent.
Frankfurt shed most of Wednesday's gain as Viag (FVIA) and Veba (FVEB), the utilities which plan to merge, each tumbled. Viag lost 1.9 percent and Veba dipped 3.6 percent.
Deutsche Telekom (FDTE) was off 3.5 percent and Deutsche Bank (FDBK) lost 2.6 percent as both sectors suffered selling pressure.
Truck maker MAN (MAN) led the small band of gainers, up 1.9 percent.
In Paris, chip maker STMicroelectronics (PSGS) provided some relief from the selling, rising 2.1 percent after announcing a share offer that will dilute government holdings below 5 percent and cut France Telecom's (PFTE) stake to 10 percent from 13.7 percent. France Telecom shares lost 1.4 percent.
In the oil sector, Elf Aquitaine (PAQ) was down 2.1 percent after it said it will not embark on merger talks with TotalFina (PFP) until concessions were made. TotalFina lost 0.6 percent.
The focus in Amsterdam was the staffing agency Vedior following its $1.8 billion cash bid for Britain's Select Appointments (SLA) to create the world's third-largest employment group. Vedior shares were up 2.7 percent. Select lost 1.1 percent after jumping 17 percent Wednesday.
In the currency markets, the dollar lost ground against the euro, trading around $1.0685, but climbed back above 109 yen.
--from staff and wire reports
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