Europe ends lower

February 15, 2002 Posted: 1811 GMT

LONDON (CNN) -- European markets ended lower on Friday, led by telecom stocks, as a drop in U.S. consumer sentiment added to the gloom.

The University of Michigan in the U.S. said its index of consumer sentiment fell to 0.9 in February from 93.0 in January, much weaker than forecasts, triggering worries of another dip in the economy.

London's FTSE 100 slipped 0.5 percent to 5,182.5, while the CAC 40 blue chip index in Paris dropped 1.2 percent to 4,377.0 and Frankfurt's electronically traded Xetra Dax was down 2 percent lower to 4,874.7 in late trading (the German market closes at 1900 GMT).

The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was down 0.8 percent, with the IT, electronics and telecom sectors among the main decliners.

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French telecoms equipment maker Alcatel (CGEP) shed 6.7 percent after former CEO Pierre Suard cast doubt on the company's accounting practices.

Alcatel said Suard's comments were "baseless," but so-called 'Enronitis' or accountancy worries spread, with Equant, the high-speed communications network company, falling eight percent.

Philips Electronics, Europe's third-biggest chip maker and biggest consumer electronics company, fell 4.2 percent, while No. 2 Infineon Technologies (FIFX) was down 2.8 percent in late trading in Frankfurt.

Finnish mobile phone maker Nokia lost 5.3 percent while Ericsson, the world's biggest supplier of high-speed mobile phone networks, declined 4.6 percent.

French software maker Dassault Systems (DAST) lost 6.4 percent.

Deutsche Telekom (DTEG) fell 4 percent as it faced a Friday regulatory deadline concerning the $4.8 billion sale of cable television assets. France Telecom (FTE) was down 5.8 percent in Paris, weighed down by debt concerns for the sector.

The banking sector came under pressure after shares in Lloyds TSB (LLOY), the UK's third biggest bank, fell 1.8 percent after reporting an 8 percent fall in 2001 pretax profit. The retail bank announced plans for 3,000 job cuts.

Meanwhile, shares in British cruise ship owner P&O Princess (POC) fell 2.2 percent after investors opted to postpone a vote on their agreed merger with Royal Caribbean Cruises.

The decision, taken after a marathon meeting in London which ended around 0500 GMT, gives them more time to consider a hostile £3.8 billion bid from Carnival, the world's biggest cruise operator.

Among Europe's smaller markets, Amsterdam's AEX index slipped 0.5 percent and Milan's MIB30 index dropped 1.3 percent, while the SMI in Zurich fell 0.1percent.

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In the U.S. on Friday, the Nasdaq composite index slipped 25.18 points to 1,818.19, while the Dow Jones industrial average declined 39.65 to 9,962.34.

Wall Street is closed on Monday for President's Day.