LONDON (CNNfn) - Technology, media, and telecom stocks took a pasting on Wednesday, dragging Europe's bourses into sharp declines, with losses spreading to auto and financial stocks on concern the U.S. election outcome will remain mired in confusion for many days yet.
London's benchmark FTSE 100 index tumbled 160.7 points, or 2.5 percent, to 6,221.4, led by fiber-optic component maker Bookham Technology (BHM) and Irish Internet security firm Baltimore Technologies (BLM).
 The blue-chip CAC 40 in Paris dropped 136.32 points, or 2.2 percent, to 5,944.70 as information technology consultant Cap Gemini (PCAP) and food maker Groupe Danone (PBN) plummeted.
Frankfurt's electronically traded Xetra Dax slumped 167.53 points, or 2.5 percent, to 6,510.54, with software provider SAP (FSAP) and automaker BMW (FBMW) declining sharply.
"The market is under the shadow of the U.S.," said Tony Jackson, an equity strategist at ING Barings Charterhouse. "It doesn't look like the election will be cleared up over the holiday weekend in the U.S. and people don't want to be exposed ahead of it."
Amsterdam's AEX index shed 2.4 percent and Zurich's SMI slipped 1.7 percent while in Milan the MIB30 dropped almost 2 percent.
The broader FTSE Eurotop 300 index, a basket of Europe's largest companies, fell 2.5 percent to 1,567.84, as its computer sector dropped 8.5 percent and the information technology sub-index fell 3.5 percent.
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U.S. markets fell midday Wednesday. The blue-chip Dow Jones industrial average lost 0.8 percent to 10,407.66 while the tech-laden Nasdaq composite index slipped 3.7 percent to 2,765.59.
In the currency market, the euro fetched 84.30 U.S. cents, little changed from 84.34 cents in late New York trading on Tuesday.
Technology stocks fell sharply after Dutch information technology company Getronics warned it would have a loss in the first half of 2001 due to stagnant sales and investment costs. Getronics plunged 42 percent.
Europe's largest software maker, SAP (FSAP), sank almost 9 percent in Frankfurt while British software consultant Sema Group (SEM) declined 8.9 percent and Logica (LOG) dropped 5.4 percent.
Bookham Technology was down 9.7 percent and Baltimore Technologies slumped almost 10 percent.
 Information technology consultant CMG (CMG) was the biggest decline on the FTSE 100, sliding 11.9 percent while French counterpart Cap Gemini (PCAP) fell 6 percent. Franco-Italian chipmaker STMicroelectronics (PSTM) was 1.33 percent lower while German rival Infineon Technologies (FIFX) lost 6.7 percent.
Anglo-American fund manager Amvescap (AVZ) fell 9.7 percent, extending Tuesday's loss of more than 8 percent, after U.S. investment bank Merrill Lynch issued a gloomy report on the fund management sector.
Among other financials, Deutsche Bank (FDBK) fell 5.3 percent and France's BNP Paribas (PBNP) lost 4.3 percent, and HSBC Holdings dropped 5.1 percent in London.
Lloyds TSB Group (LLOY) dropped 5.5 percent after Merrill Lynch cut its rating on the stock to intermediate "neutral" from "accumulate.' Close rival Barclays (BARC) lost 4.7 percent.
In Paris, food maker Danone (PBN) dropped 10.5 percent as the company confirmed it is interested in buying Quaker Oats (OAT: Research, Estimates) after Coca-Cola Co. (KO: Research, Estimates) backed out of talks with the food and drink firm.
In Frankfurt's industrial sector, truck and engineering firm MAN (FMAN) slipped 0.5 percent as the company's 20 percent rise in net profit to  48 million ($41 million) failed to impress investors. German carmaker BMW (FBMW) fell 3.9 percent and Volkswagen (FVOW) dropped 3 percent.
In the telecom sector, FTSE 100 index heavyweight Vodafone Group (VOD), the world's largest mobile-phone operator, declined 3 percent while Germany's Deutsche Telekom (FDTE) fell 2.8 percent. France Telecom (PFTE) fell 3.1 percent.
Invensys (ISYS) rose 6.8 percent after the industrial automation and controls firm said it would offer for sale shares in its power systems business. The company also reported a 33 percent fall in first-half pretax profit to £470 million ($658 million) before one-time items.
Britain's second-biggest supermarket chain J Sainsbury (SBRY) plunged 8.7 percent after reporting a 17 percent fall in first-half profit to £300 million, in line with expectations. The company also said it was in the advanced stages of selling Homebase, its home improvement chain.
-- from staff and wire reports 
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