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Europe bourses end lower
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August 3, 2001: 12:12 p.m. ET
Tech, media sectors drag markets; U.S. jobless figures below forecast
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LONDON (CNN) - European stock markets closed in the red on Friday as lower-than-expected U.S. unemployment figures failed to stir investors.
London's FTSE 100 slipped 0.7 percent to end at 5,547.6 and the CAC 40 blue chip index in Paris closed 1.1 percent lower at 5,031.29. Frankfurt's electronically traded Xetra Dax was down 0.2 percent at 5,764.43 in late trading.
The U.S. said the jobless rate in July was 4.5 percent and that non-farm payrolls shrank by 42,000, compared with a forecast of 50,000. The numbers reduce the chances of a further U.S. interest rate cut to boost the economy.
An early technology rally across Europe's markets had turned tail by midday, and many top techs headed the list of losers in the main bourses at the close.
Weak oil and media shares added to the gloom.
In London, business telecom services provider Colt Telecom (CTM) led the decliners on the FTSE, ending 8.2 percent lower.
Granada (GAA), part-owner of Britain's ITV broadcasting network, slid 8 percent after investment bank Goldman Sachs cut its rating on the stock.
Carlton Communications, a rival broadcaster, fell 3.6 percent, while Europe's second-largest pay-TV company British Sky Broadcasting (BSY) lost 4.3 percent. France's TF1 (PTFI), the country's biggest broadcaster, was down 2.7 percent in Paris.
In Frankfurt, Europe's second-largest semiconductor maker, Infineon Technologies (FIFX), was the main loser on the Dax index, falling 4.2 percent.
Siemens (FSIE), Europe's second-largest phone equipment maker, fell 1.4 percent. The Financial Times Deutschland said the company was planning to axe another 5,000 jobs as demand for telecom equipment continues to weaken.
Unilever (ULVR), the Anglo-Dutch consumer products company, fell 1 percent in London. The company, whose products include Knorr soup, Dove Soap and Calvin Klein fragrances, posted an 8 percent increase in net profit.
Michael Hughes at Baring Asset Management told CNN: "The stock has risen more than 120 percent in the last 18 months... relative value lies elsewhere in the market. It's the old adage -- buy on the rumour, sell on the news."
In other corporate news, United Business Media (UBM) of the UK posted a 48 percent drop in first-half profits to £71.7 million ($103 million) after a sharp fall in ad revenue at its U.S. publications business. But its stock rallied after earlier falls and was up 1.4 percent at the close.
In Paris, software company Dassault Sysemes (PDSY) was the CAC 40's heaviest faller, diving 6.7 percent, while Europe's biggest computer services group, Cap Gemini (PCAP), dropped 4.5 percent.
Shares in Accor (PAC), the hotel operator, were down more than 2 percent after sales results came in at the bottom end of analyst expectations. The group reported first-half sales up 8.6 percent at  3.6 billion.
In Amsterdam the AEX index slipped 1.3 percent and the SMI in Zurich was 0.9 percent lower. Milan's MIB30 index was little changed from Thursday's close.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was down by nearly 1 percent, with the computer services, information technology, media and oil and gas sectors all in negative territory.
U.S. stocks fell at midday Friday after the latest job market data did nothing to convince investors that the worst news about rising layoffs and growing unemployment had passed.
The Nasdaq composite fell 29.60 to 2,057.78, following gains in each of the past three sessions. The Dow Jones industrial average slid 82.55 to 10,468.98. 
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