Europe mixed after U.S. data

LONDON, England (CNN) -- European markets ended mixed on Wednesday after initial gains, inspired by strong corporate earnings, were eroded by concerns over a slowdown in U.S. economic growth.

Markets on both sides of the Atlantic began sliding shortly after U.S. government data showed the world's biggest economy grew by just 1.1 percent in the second quarter -- well below economists' estimates -- and down from a revised 5-percent growth rate in the previous quarter.

Despite the late sell-off, some European bourses managed to close in positive territory.

London's FTSE 100 ended up 1.4 percent to 4,237.7 and the CAC 40 blue chip index in Paris rose 1.1 percent to 3,415.38, while Frankfurt's electronically traded Xetra Dax was down 2.4 percent to 3,785.51 in late trading (the German market was set to close at 1800 GMT).

The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, edged up 0.7 percent, led by the leisure, food products and aerospace sub-sectors.

Markets soared early in the session on upbeat profits results from some of Europe's biggest companies.

Deutsche Lufthansa (LHA), Europe's second-largest airline, was up 4.4 percent to 12.48 euros in late Frankfurt trading after saying it expected an operating profit of 500 million euros ($494 million) in 2002, up from the previous estimate of 400 million euros. (Full story)

British Airways (BAY), Lufthansa's biggest rival, gained 7.4 percent to 160 pence. Air France (PAF), Europe's No. 3, gained 4.4 percent to 14.87 euros and KLM of the Netherlands jumped 9.8 percent to 11.80 euros.

Unilever (ULVR), Europe's biggest consumer products group, rose 8.9 percent to 562.50 pence after it reported higher-than-expected second-quarter core earnings and raised its 2002 forecast. (Full story)

British Sky Broadcasting (BSY), Europe's second-largest pay-TV company, closed up 1.2 percent to 588.77 pence -- off its session lows. BSkyB, controlled by Rupert Murdoch, said on Wednesday profits rose in the fourth-quarter as it attracted more subscribers than expected after the demise of its main rival, ITV Digital. (Full story)

Aventis (PAVS) rose 3.2 percent to 67 euros after the drugmaker said second-quarter net income rose 30 percent to 507 million euros, beating forecasts, thanks to strong sales of its best-selling hay fever, cancer and blood-clot fighting medicines. (Full story)

However, Germany's dominant postal company Deutsche Post was down 2.2 percent to 10.43 euros in late Frankfurt trading after saying its profit plunged due largely to a demand by the European Union that it repay state aid. (Full story)

The AEX index in Amsterdam gained 2.2 percent, while Milan's MIB30 index lost 0.1 percent and the SMI in Zurich slipped 0.4 percent.

In the U.S. on Wednesday, weaker-than-expected economic reports sent chills through the markets, pushing the major indexes lower in early trading.

The Commerce Department said gross domestic product grew 1.1 percent in the second quarter, down from a revised 5 percent in the first quarter. Economists were expecting 2.3 percent growth in the second quarter. (Full story)

In addition, the National Association of Purchasing Management-Chicago's closely watched survey of regional manufacturing activity declined to 51.5 in July, compared to a revised reading of 58.2 the previous month. Economists were expecting a reading of 56.5. (Full story)

At midday, the Nasdaq composite index was down 28.84 points to 1,315.35, while the Dow Jones industrial average lost 107.92 points to 8,572.11. The Standard & Poor's 500 index was down 8.88 points to 893.80.