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European markets sink
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May 3, 2001: 12:20 p.m. ET
Telecoms and technology shares lead declines on major bourses
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LONDON (CNN) - Europe's major bourses were down sharply by the close on Thursday, with telecom and technology stocks leading declines.
London's FTSE 100 fell 2.3 percent to 5,765.8, with the world's biggest wireless operator Vodafone (VOD) falling 4.8 percent after selling stock to fund the acquisition of British Telecom's Japanese and Spanish assets.
The speedy sale of stock by Vodafone comes as a blow to other European telecom operators who are struggling to get support from institutional investors for similar plans to cut debt.
A weak opening on Wall Street depressed European exchanges further.
In Paris, the CAC 40 blue chip index slipped 2.1 percent to 5,457.07 as index heavyweight France Telecom (PFTE) fell 5.6 percent despite reporting that first-quarter sales rose 37 percent, in line with expectations.
Frankfurt's electronically traded Xetra Dax dropped 1.8 percent to 6,102.86, with Europe's biggest software company SAP (FSAP), falling 4.3 percent after rising more than 70 percent over the last three weeks.
In Amsterdam the AEX index sank 2.1 percent, and the SMI in Zurich was down 1 percent. Milan's MIB30 index dipped 2.5 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was down 1.9 percent, with its computer services and life assurance sub indices down more than 4 percent each.
In the U.S., a rise in jobless claims forced the markets lower in morning trading, with the Nasdaq composite index down 2.7 per cent at 2159.97 and the Dow Jones industrial average dipping 140.35 points, or 1.3 percent, to 10,736.33.
In the currency markets, the euro slipped 0.75 of a cent against the U.S. dollar to 88.95 cents from 89.70 cents in late New York trade on Wednesday.
Among the technology stocks performing poorly. Finland's Nokia, the world's biggest wireless handset maker, fell 3.8 percent and cross-border rival Ericsson dropped by the same amount.
Other notable telecom equipment makers also fell. Alcatel (PCGE), which is in talks to buy Lucent Technologies (LU: Research, Estimates) optical fibre unit, dropped 2.6 percent and Britain's Marconi (MONI) lost 4.7 percent.
Telecom operators fell. Deutsche Telekom (FDTE) dropped 4.5 percent, business telecom services operator COLT Telecom (CTM) dipped 6 percent and Britain's biggest internet data carrier Energis (EGS) declined 7.2 percent.
Oil stocks fell. BP Amoco (BP-), the world's third-largest listed oil company, lost 4 percent after oil prices fell 71 cents more to $27.62 a barrel on Wednesday. Shell Transport & Trading (SHEL), which owns 40 percent of Royal Dutch Shell, the world's second-largest oil company, fell 4 percent as well despite reporting a fifth consecutive record quarter.
Companies reporting first-quarter earnings were having a mixed day. Deutsche Bank (FDBK), Germany's biggest bank, fell 2.2 percent despite beating analysts' expectations with a strong rise in first-quarter results, driven by a jump in trading income and a fall in administrative costs.
Scottish Power (SPW) rose 1.5 percent after announcing a three-way restructuring plan, including a U.S. expansion programme, as Britain's largest power utility said profit plunged 37 percent. Shares in specialty chemicals concern ICI (ICI) rose the most in London, up 3.8 percent, on first-quarter results that showed it performing well.
But British Airways (BAY) fell 6.5 percent after it reported traffic falling 13.3 percent in April due to the U.S. slowdown and the foot and mouth scare. And Britain's largest insurance group CGNU (CGNU) fell 4.5 percent after the company reported a 12 percent increase in first quarter profit, helped by record sales in its home market.
In Amsterdam, chipmaking equipment maker ASM Lithography said it had received U.S. approval to go ahead with a bid for Silicon Valley Group Inc., leading to a fall in its share price of nearly 4 percent. 
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