European stock in a mixed mood

LONDON, England (CNN) -- European markets were in a mixed mood in midday trading on Friday, with Vivendi Universal extending losses after brokers said it was two months away from being insolvent.

Media giant Vivendi (PEX), which has seen its stock dive by a third in the past two days, slid 13.7 percent to 9.15 euros. Deutsche Bank cut its rating to "market perform'' from "buy. and cut its target to 16 from 30 euros.

"We feel it is impossible to present a Buy recommendation on a stock which is capable of being declared insolvent within two months and for which we have no clarity on the prospective group structure and strategy,'' Deutsche Bank said in a research note. (Full story)

London's FTSE 100 was the only bright light, rising 1 percent to 4,370.7.0. Frankfurt's electronically traded Xetra Dax was little changed at 3,667.1 and the CAC 40 blue chip index in Paris slipped 0.5 percent to 3,359.25.

The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 0.5 percent, with the telecom sector leading gains.

Deutsche Telekom (FDTE), Europe's biggest phone company, rose 2.8 percent to 10.95 euros. Interim Chief Executive Helmut Sihler told the Frankfurter Allgemeine Zeitung that the company's first half results would be inline with forecasts. The company is expected post earnings on August 21. (Full story)

Some European technology stocks rose after Dell Computer (DELL) reported higher second-quarter earnings and hiked its sales outlook. (Full story)

Nokia, the world's biggest mobile phone company, rose 2.6 percent. SAP (FCAP), Europe's biggest software maker, climbed 1.3 percent to 77.05 and Cap Gemini (PCAP), Europe's biggest computers services company, added 1.5 percent to 28.18 euros.

British insurer Royal Sun & Alliance (RSA) slipped 2.3 percent to 104.7 pence after Moody's Investors Services placed its debt under review for a possible downgrade. Royal & Sun posted and 18 percent slump in profit last week because of its strategy to focus on volatile property and casualty business.

But all eyes will be back on the U.S. for the latest round of economic data. Late Friday, data on July's consumer price index is expected to underline the absence of any inflationary pressures in the world's biggest economy.

And market professionals said trading was thin across the continent and could explain some strong gains seen over the last two weeks.

"Economic data is currently pointing to a double-dip recession." Anais Faraj, strategist at Nomura International, told CNN. "Investors are feeling bullet-proof at the moment but with most professionals away on holiday we expect the selling to begin again by the end of the month."

The AEX index in Amsterdam rose 0.3 percent, Milan's MIB30 added 2.7 percent, the IBEX 35 in Madrid jumped 3.2 percent, while the SMI in Zurich declined 0.7 percent. Milan and Madrid were closed for Assumption Day on Thursday and were making for a lost day's trading.

In the U.S. on Thursday, stocks closed a volatile day in positive territory, with a late-session rally in techs helping markets extend the previous session's SEC certification deadline rally despite mixed economic news. (Full story)

The Dow Jones industrial average gained 74.83, or 0.86 percent, to 8,818.14 and the Nasdaq composite added 10.71, or 0.80 percent, to 1,345.01, while the Standard & Poor's 500 index rose 10.63, or 1.16 percent, to stand at 930.25.

Wall Street was expected to open slightly lower later on Friday. S&P 500 index futures fell 1.1 points to 929.4 on the Globex trading system, while fair value, a measure that takes account of interest costs and dividend payments, was calculated at 932.04.