LONDON (CNN) - European stock markets closed lower on Tuesday after a raft of U.S. technology companies issued profit warnings.
More than 20 tech companies issued warnings after Wall Street closed on Monday, and the confessional season continued on Tuesday with software company Broadvision (BVSN: Research, Estimates) adding to the gloom.
The FTSE 100 index lost 76.8 points, or 1.3 percent, to 5,639.9, with eight out of the 10 top percentage losers tech stocks.
Software company Dimension Data (DDT) led the decliners, tumbling 28.7 percent after the South African-based company said profits would miss targets as competition and pricing concerns crimp operating margins.
Other London-listed software companies followed Dimension Data lower. Business software company Sage (SGE) and rival Logica (LOG) lost 6.8 percent, CMG (CMG) dipped 4.3 percent and Misys (MSY) declined 4.2 percent.
Germany's SAP (SAP), Europe's biggest software company, fell 5.1 percent in Frankfurt and Dassault Systemes (PDSY) dipped 4.9 percent in Paris.
UK telecom equipment maker Marconi (MONI) shed 6.8 percent to 254.75 pence after investment bank Morgan Stanley reduced its share price target to 315p from 500p.
Telecoms equipment tester Spirent (SPT) was off 2.9 percent
The world's biggest mobile phone maker, Nokia, dropped 3 percent while rival Ericsson fell 1.6 percent.
Frankfurt's late trading Xetra Dax fell 0.8 percent to 6,060.33, as one of Europe's biggest chemical companies, Bayer (FBAY), fell 1.5 percent after a profit warning from DuPont.
The second-largest U.S. chemicals company said a slowing global economy would hurt its second-quarter earnings. ICI (ICI) dropped 2.3 percent in London.
Shares in insurer Allianz (FALZ) lost 1.9 percent after the company launched a  1 billion bond issue to fund its acquisition of German bank Dresdner (DRB). Dresdner slipped 0.9 percent.
Deutsche Telekom (FDTE), Europe's biggest telecom operator by sales, fell 1.4 percent after it began the sale of 8 billion of bonds to fund the restructuring of its debt and business.
Other telecom players to feel the brunt of rejection included the world's biggest mobile phone company Vodafone Group (VOD), which fell 3.6 percent after surging more than 6 percent in the previous session.
France Telecom (PFTE) declined 4.8 percent after Merrill Lynch and Societe Generale launched the placement of 10-13.5 million shares owned by the SITA foundation.
Bucking the trend, KPN Telecom rose almost 3 percent, despite denying reports saying merger talks with Belgium's Belgacom were entering their final stages
In Paris, the CAC 40 fell 90.73 points, or 1.7 percent, to 5,205.78, as one of the world's biggest drugs companies, Aventis (PAVE), fell 3.8 percent on news Barr Laboratories (BRL: Research, Estimates) filed for approval of a generic version of its top allergy drug Allegra.
German pharmaceutical company Schering (FSCH) dropped 1.6 percent in Frankfurt, after saying the U.S. Food and Drug Administration has not approved its patch for the treatment of menopausal symptoms.
Among Europe's key chip makers, Europe's biggest, ST Microelectronics (PSTM), lost 4.3 percent and Philips Electronics, Europe's No. 3, dipped 2.3 percent. ARM Holdings (ARM), Europe's biggest chip designer, fell 6.6 percent.
Europe's biggest computer services group, Cap Gemini Ernst & Young, (PCAP) eased nearly 1.8 percent.
In Amsterdam, the AEX index was down 0.8 and Milan's MIB30 dropped 0.5 percent.
The SMI in Switzerland was off 1 percent, with troubled Swissair, sliding 5.4 percent, facing the prospect of legal action from the Belgian government over its failure to increase it stake in state-owned airline Sabena as had been agreed.
The pan-European FTSE Eurotop 300, a broader basket of European stocks, fell 1.5 percent, with its computer services index sliding 6.5 percent and the information technology sector dipping 2.5 percent.
The raft of profit warnings from U.S. companies pushed U.S. stocks lower in midday trade. The Nasdaq composite fell 0.3 percent to 2,141.53, while the Dow Jones industrial average slid 0.4 to 10,551.58.
U.S. markets will close at 1 p.m. ET on Tuesday ahead of Wednesday's Independence Day holiday.
In the currency market, the euro was little changed against the U.S. dollar, fetching 84.76 U.S. cents compared with 84.76 in late New York trade on Monday. 
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