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European techs tank
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April 3, 2001: 12:44 p.m. ET
Software stocks hit by Ariba warning; Orange financing hits Nokia and peers
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LONDON (CNN) - Europe's main stock markets dived to end sharply lower on Tuesday, as tech stocks tanked after U.S. software maker Ariba's profit warning.
Ariba, which makes Web-based procurement software, said late Monday it expects to lose 20 cents per share, plans to cut a third of its workforce and will terminate its expected merger with Agile Software.
London's FTSE 100 fell 2.8 percent, or 155.4 points, to end at 5,463.1, with information technology consultant CMG (CMG) and chip designer ARM Holdings (ARM) plummeting more than 17 percent each.
 In Paris, the CAC 40 blue chip index lost 4 percent, or 206.48 points, to finish at 5,004.00, led lower by information technology consultant Cap Gemini Ernst & Young (PCAP) and telecom equipment maker Alcatel (PCGE).
Frankfurt's electronically traded Xetra Dax tumbled 4 percent, or 232.31 points, to touch 5,528.45 in late trade. SAP (PSAP), Europe's biggest software company and electronics and engineering powerhouse Siemens (FSIE) posted the biggest percentage losses.
In Amsterdam, the AEX index shed 3.3 percent, as chipmaking equipment supplier ASM Lithography and consumer electronics powerhouse Philips Electronics fell more than 7 percent each.
The SMI in Zurich lost 2.3 percent and the MIB 30 in Milan declined 2.8 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, fell 3.3 percent, with its computer services and software component down more than 10.8 percent and the information technology sub-index down 8 percent.
In the currency market, the euro strengthened slightly against the U.S. dollar to 89.35 cents from its late New York trading price of 87.94 cents on Monday.
In the U.S., the tech-heavy Nasdaq composite index was 4.6 percent lower, while the blue-chip Dow Jones industrial average shed 2 percent by midday.
Ariba's (ARBA: Research, Estimates) profit warning and the Nasdaq's latest plunge sent shockwaves across the technology and software sector. SAP, the world's biggest business management software company, fell 11.3 percent.
Logica, which makes software for sending text messages for mobile phones, plunged 12.4 percent and accounting software company Sage Group (SGE) dropped 9.3 percent in London. French engineering software company Dassault Systeme (PDSY) fell 6.6 percent.
Information technology consultant CAP Gemini Ernst & Young (PCAP) fell 11.1 percent, topping the CAC 40 loser board while UK rival CMG plunged 19.2 percent
 Among technology stocks, telecom network supplier Alcatel dropped 9.4 percent after the company said it plans to cut 1,100 U.S. employees, or about 5 percent of its U.S. staff, in the face of slowing demand for its communications equipment. The company is also providing financing to mobile operator Orange (POGE) for  315 million in third generation, or high-speed, mobile network equipment.
Orange fell 3 percent while parent France Telecom (PFTE) lost 5.2 percent.
Nokia, which was named as the leading supplier to Europe's second biggest mobile phone provider Orange and is giving 2 billion in financing as part of a 1.5 billion equipment contract, fell 7.3 percent.
Sweden's Ericsson, the world's biggest mobile phone equipment maker which is also providing Orange with financing, fell 7.3 percent.
British network equipment maker Marconi (MONI) shed 12.3 percent.
Communications equipment supplier and engineering firm Siemens (FSIE) dropped 6.5 percent.
UK chip designer ARM Holdings (ARM) sank 17.2 percent while Franco-Italian chipmaker STMicroelectronics (PSTM) dropped 7.3 percent and German rival Infineon Technologies (FIFX) lost 5.2 percent.
Shares in the region's airlines also fell. Lufthansa (FLHA) dropped 2 percent after earlier touching a year-low after its pilots threatened to escalate their pay dispute with the management by balloting members on a possible strike.
Switzerland's SAirGroup, the parent of national carrier Swissair, dived 21.1 percent after posting a massive loss last year on Monday.
Alitalia declined 1.9 percent in Milan after the Italian carrier posted a wider-than-expected loss and said it didn't expect to make a profit before the end of 2001.
British Airways (BAY), Europe's biggest airline, dropped 4.5 percent.
In the financial sector, German insurer Allianz (FALZ) dropped 5.8 percent on concern it may be paying to much for Germany's third-largest bank, Dresdner Bank (FDRB). France's AXA (PCS), the world's biggest insurance company, slid 5.7 percent in Paris.
Railtrack (RTK), the operator of Britain's rail network, plunged 15.8 percent. Analysts turned negative on the stock after the government took away its monopoly over big upgrading projects. 
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