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Europe closes lower
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March 19, 2001: 1:08 p.m. ET
Telecom equipment makers tumble after Corning warning; Billiton surges
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LONDON (CNN) - European markets ended lower on Monday, as a tech profit warning rattled investors, already wary ahead of an expected U.S. interest rate cut.
In Paris, the CAC 40 blue-chip index fell 1.1 percent, or 56.17 points, to end at 5,048.60, led lower by aerospace firm EADS (PEAD) and France Telecom (PFTE).
 Frankfurt's Dax shed 1.4 percent, or 80.49 points, to touch 5,654.00 in late trade, as utility and specialty chemicals firm E.ON (FEOA) and dialysis provider Fresenius Medical Care (FFME) tumbled.
London's FTSE 100 dipped 0.2 percent, or 11.2 points, to finish at 5,551.6, with telecom service provider Energis (EGS) and COLT Telecom (CTM) sliding.
European telecom equipment makers fell after U.S. fibre-optic equipment maker Corning (GLW: Research, Estimates) warned it would miss forecasts this year as telephone companies spend less. Britain's Marconi (MONI) shed 7.1 percent, also hit after Credit Suisse First Boston lowered the company's 2001 earnings estimates. French rival Alcatel (PCGE) lost 3 percent.
In the currency market, the euro was little changed against the U.S. dollar, fetching 89.95 cents from 89.92 in late New York trade on Friday.
The U.S. Federal Reserve interest rate meeting on Tuesday was also unnerving traders, who fretted that any cut might be too late to boost economic growth. Economists expected a rate cut of between 0.50 and 0.75 percentage points.
Earlier on Monday, the Bank of Japan introduced monetary policies that effectively cut interest rates to nearly zero, as expected, amid growing alarm about the state of the world's second-largest economy.
In other markets, Amsterdam's AEX index and the SMI in Zurich each ended down 1. percent. Milan's MIB 30 slipped 0.1 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, fell 0.8 percent, with the computer services index down nearly 3.3 percent.
In the U.S., the technology-heavy Nasdaq composite index was 1 percent lower while the blue-chip Dow Jones industrial average slipped 0.2 percent in midday trade.
 UK mining firm Billiton (BLT) rose 13.7 percent after agreeing to a $28 billion merger with Australia's BHP.
Billiton's rival Rio Tinto (RIO), the world's third-largest miner, rose 2.6 percent and Anglo American (AAL), which owns 7.1 percent of Billiton, gained 1.8 percent.
Aerospace firm EADS (PEAD) dropped 4.7 percent after reporting a bigger than expected loss.
Software companies ended lower. Misys (MSY) dipped 7 percent, Logica (LOG) dropped 4.8 percent and accounting software maker Sage (SGE) declined 3.9 percent in London. Information technology consultant Cap Gemini Ernst & Young (PCAP) fell 3.8 percent in Paris.
Among telecom stocks, Deutsche Telekom lost 3.6 percent, France Telecom gave up 5.2 percent to be the biggest loser on the CAC. UK business telecom services provider COLT Telecom (CTM) declined 7.8 percent and Energis (EGS) lost 11 percent.
Oil stocks rose after petroleum cartel OPEC cut it production quotas by 1 million barrels a day. BP Amoco (BP-), the world's third-largest oil company, rose 0.6 percent and Shell Transport & Trading (SHEL), which owns 40 percent of Royal/Dutch Shell, gained 1.1 percent. Total Fina Elf (PTP) was also 1.1 percent higher in Paris.
Germany's E.ON (FEOA) fell 4.3 percent and dialysis provider Fresenius Medical Care (FFME) lost 5.1 in Frankfurt. 
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