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Financials spook Europe
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October 29, 2001: 7:27 a.m. ET
Munich Re, Spain's SCH lead slide amid profitability concerns
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LONDON (CNN) - Europe's major bourses fell on Monday, led by financial stocks after Spanish bank SCH cut its 2001 profit forecast.
Santander Central Hispano, Spain's biggest bank, fell 3.9 percent in Madrid. Rival Banco Bilbao Vizcaya Argentaria dropped 3.6 percent as Spain's benchmark IBEX 35 index in Madrid dropped almost 2 percent.
SCH reported lower-than-expected nine-month figures, blaming tougher conditions after last month's attacks and said full-year 2001 profit would now be  2.62 billion, 240 million less than the target announced at the start of the year.
London's FTSE 100 slipped 1.4 percent to 5,118.2 and the CAC 40 blue chip index in Paris lost 1.6 percent to reach 4,404.92, while Frankfurt's electronically traded Xetra Dax slid 2.2 percent to 4,715.2.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was down 1.4 percent, with the computer services, information technology, insurance and banking sub sectors in negative territory.
Commerzbank (FCBK), Germany's fourth-largest bank, fell 2 percent after Chief Executive Klaus-Peter Mueller said on Sunday he did not rule out reporting a loss for this year.
Among other banking stocks, Britain's Royal Bank of Scotland (RBOS) dipped 3.1 percent and HSBC Holdings (HSBA) slid 2.9 percent.
Munich Re (FMUV3), the world's biggest reinsurer, fell 3.1 percent after saying on Saturday it expected 2001 profits to take a heavy hit from claims related to last month's attacks on the U.S. Claims may top its current 2.1 billion ($1.87 billion) estimate.
Outside the financial sector, Europe's biggest car maker Volkswagen (FVOW) lost 2.8 percent. Analysts expect third quarter profit to decline as consumer sentiment wanes in the wake of the September 11 attacks. Luxury car maker BMW (FBMW) slid 2.5 percent.
German drug and chemicals group Bayer (FBAY) lost 1.8 percent after the Financial Times Deutschland said it was facing a collective law suit from a U.S. consumer rights group over its patent on anthrax treatment Cipro.
Among keenly watched technology stocks, Finnish mobile phone company Nokia fell 2.6 percent, Swedish rival Ericsson dipped 3.6 percent and France's Alcatel (PCGE) declined 2.1 percent.
SAP (FSAP), Europe's biggest software company, fell 3.8 percent and UK accounting software house SAGE Group (SGE) dropped 3 percent and Logica (LOG), which makes software that allows text messaging on mobile phones, fell 2.4 percent.
STMicroelectronics (PSTM), Europe's biggest semiconductor maker, fell 2.3 percent, the second-biggest Infineon Technologies (FIFX) shed 3.3 percent and Philips Electronics, the third-biggest chip maker and Europe's biggest consumer electronics group, lost 1.9 percent.
ARM Holdings (ARM), Europe's biggest chip designer, topped the percentage loser board in London, sliding 4.3 percent.
In Amsterdam, the AEX index slipped 0.7 percent and the SMI in Zurich was 1.6 percent lower, while Milan's MIB30 index dipped 1 percent.
In the U.S. on Friday, stocks cemented a five-week advance as investors continued looking beyond economic weakness to a time of rebounding growth next year.
The Dow Jones industrial average gained 82.27 points, or 0.9 percent, to 9,545.17, while the Nasdaq composite index slipped 0.4 percent to 1,768.96.
Wall Street was expected to open sharply lower later on Monday. S&P 500 index futures slipped 6.5 points to 1,095.5 on the Globex trading system, while fair value, a measure that takes account of interest costs and dividend payments, was calculated at 1,105.55. 
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