European Closing Update: U.S. Weighs on Europe's Markets

LONDON -- A modest rise in pharmaceutical stocks and a few select retailers couldn't hide what was, overall, a fairly depressing day in the UK. The FTSE 100 tried to shrug off events stateside for most of the day, but once Wall Street started moving lower again, it seemed to have no choice but to play follow the U.S. leader.

By the close, the FTSE 100 stood 66 points lower, or 1.0%, at 6302. The tech sector looked even more out of sorts, with the Techmark 100 down 102 points, or 3.0%, to 3356.

Unsurprisingly after Nortel's woes, optical-component maker Bookham Technology (BKHM) was the blue-chip index's biggest loser, shedding 11.3% to 21.50 ($31.18). Baltimore Technologies (BALT) was also under pressure, despite signing a major deal with Motorola (MOT) for the development of mobile Internet security. The stock initially rose nearly 4% to an intraday high of 572p, but fell back to close 4.4% lower at 527.

Among the chip designers, ARM Holdings (ARMHY) lost 3.4% to 652p, while Parthus Technologies (PRTH) felt the pressure from an imminent share placing and tumbled 7.5% to 248p.

Drug stocks provided some level of support. AstraZeneca moved up 1.5% to 32.16 despite being downgraded by many brokers following poor earnings results Wednesday. Elsewhere in the sector, Shire Pharmaceuticals rose 2.6% to 13.85.

In the media sector, Granada Media and Carlton Communications sold off on fears about advertising revenues. Granada fell 7.1% to 368, while Carlton lost 6.3% to 534. BSkyB (BSY) bucked the trend by rising 2.7% to 885 ahead of next week's earnings.

Europe's other stock markets finished on a mixed note, as the CAC 40 in Paris ended down 69.5, or 1.1%, at 6208.4 but the Xetra Dax in Frankfurt was up 47.7, or 0.7%, at 6795.9 late in German trading. The Neuer Markt's tech-heavy Nemax 50 index was up 14.1, or 0.3%, at 4623.1.

French telecom-equipment maker Alcatel (ALA) continued to suffer from worries surrounding rival Nortel (NT). After tanking 8% on Wednesday, Alcatel dropped a further 3.90 euros, or 5.3%, to 70.50 ($58.37).

Elsewhere in Paris, France Telecom (FTE) ended down 4.00 euros, or 3.3%, to 119.00 and Equant (ENT) fell 0.49 euros, or 1.3%, to 37.43.

In Frankfurt, DaimlerChrysler (DCX) fell 0.63 euros, or 1.2%, to 51.95, after releasing disappointing third-quarter earnings. Rival Volkswagen (VLKAY) fell 0.70 euros, or 1.3%, to 53.40.

Heavyweight Deutsche Telekom (DT) helped prop up the Dax, rising 1.23 euros, or 3%, to 42.58.

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