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Paris CAC dealt a whack
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December 4, 2000: 12:48 p.m. ET
Paris stumbles 2.4% as telecom, tech stocks drop on fears of U.S. slowdown
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LONDON (CNNfn) - Double-fisted blows in the technology and telecom sectors knocked Europe's leading markets into the red Monday, with Paris's major index dropping nearly 2.5 percent as investors remained skittish about earnings prospects and the possibility of a weaker U.S. dollar.
"People are getting concerned about the U.S. economy slowing faster than generally expected," Jeremy Hawkins, Bank of America chief economist for Europe, said. A weakened U.S. economy would deplete demand for exports from European nations.
In Paris, the blue-chip CAC 40 index fell 139.48 points, or 2.4 percent, to close at 5,789.02. Leading the list of losers was telecom and construction company Bouygues (PEN), skidding 6.4 percent, while rival France Telecom (PFTE) fell 4.9 percent.
The FTSE 100 in London, home to Europe's largest stock exchange, closed down 11.7 points, or 0.2 percent, at 6,158.7. Leading information technology firm Sema (SEM) topping the list of losers, down 9.7 percent.
As other leading bourses closed, Frankfurt's Xetra Dax was off 1.6 percent at 6,408.10, with Deutsche Telekom (FDTE) down 4.3 percent.
Among other key markets, in Amsterdam the AEX index slipped 1.7 percent, the MIB30 in Milan shed 2.5 percent, while the SMI in Zurich shed 0.4 percent. Germany's tech-rich Neuer Markt index fell 6.3 percent.
The pan-European FTSE Eurotop 300, an index of the region's largest stocks, slipped 1.3 percent, with the telecom and computer sub-indexes each down 2.2 percent. On the upside, however, the mining component rose 3 percent.
In the currency market, the euro strengthened to 88.74 U.S. cents from 87.92 cents in late New York trade Friday. Steve Barrow, a currency analyst at Bear Stearns, told CNNfn the euro could rise to 90 cents on the back of weak economic data from the U.S., but was still in a "downward trend."
 click here for the biggest movers on the ftse 100 in London
 click here for the biggest movers on the dax 30 in Frankfurt
 click here for the biggest movers on the cac 40 in Paris
As Europe's leading markets closed, the Nasdaq composite index was down 2.1 percent, but the Dow Jones industrial average was up 100.29 points, or 1 percent, to 10,473.83.
Technology in a downdraft
Technology stocks came under pressure. In Paris, chip maker STMicroelectronics (PSTM) dropped 2.7 percent and defense electronics company Thomson-CSF (PHO) fell 4.7 percent, after rising more than 9 percent over the past week.
German software behemoth SAP (FSAP) dropped 5.2 percent and compatriot Siemens (FSIE3), an engineering company, fell 2.9 percent in Frankfurt.
In London, fiber-optic component maker Bookham Technology (BHM) dropped 6.5 percent.
In the media sector, U.K.-based publisher Emap (EMAP) dropped 3 percent while French pay-TV company Canal Plus (PAN) shed 3.6 percent.
EM.TV & Merchandising plunged 43 percent. News that privately owned German media giant Kirch Group bought a stake in the struggling owner of the Muppets wasn't enough to offset its grim nine-month results statement, following a profit warning published after the market closed Friday.
Financial stocks were under the microscope. British mortgage lender Abbey National (ANL) rose 3.8 percent after weekend reports said
Lloyds TSB (LLOY) may upset its ongoing merger talks with Bank of Scotland (BSCT). Newspapers said Lloyds directors met Sunday to discuss a bid for Abbey that could be announced at the start of the week. Bank of Scotland rose 2.4 percent, while Lloyds fell 1.3 percent.
Mining shares got a boost in London. Billiton (BLT) jumped 6.4 percent to lead FTSE 100 gainers after analysts reportedly returned upbeat from a trip to see the company's operations in South America. Rio Tinto (RIO) jumped 3.3 percent.
Shake-up at Deutsche Bank
In Frankfurt, Deutsche Bank (FDBK) slipped 4.1 percent. Germany's biggest bank said it plans to reorganize its corporate structure, reducing its five operating units to two as it seeks to fortify its strategic focus on investment banking.
Insurer Assurances Générales de France (PAGF) dropped 2.9 percent.
Biotechnology company Oxford Glycosciences (OGS) shed 1.5 percent, despite announcing an alliance with drugs firm Glaxo Wellcome (GLXO). Glaxo shares were virtually unchanged.
Swiss pharmaceuticals maker Novartis gained 1.6 percent. About 30 percent of patients with a common form of leukemia had no traces of the disease after being treated with an experimental pill made by Novartis, researchers said Saturday. 
German chemicals firm BASF (FBAS) said Monday it is selling its generic drugs business to Novartis Generics for  115 million. BASF fell 0.9 percent, while fellow German drug company Schering (FSCH) shed 3 percent.
Among retailers, Dixons Group (DXNS) declined 2.3 percent while Germany's Karstadt Quelle (FKAR) drooped 3.7 percent.
High-profile online retailer Lastminute.com (LMC) rallied 4.9 percent after saying business was better than forecast and it would be cash-flow positive earlier than planned, due largely to a major French acquisition.
-- from staff and wire reports 
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