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LONDON -- The U.K. market managed to recoup most of the early losses caused by jitters in the pharmaceutical sector, but Tuesday's interest rate decision by the Federal Reserve cast a long shadow over most of Monday's proceedings.


FTSE 100

closed down just 1.5 points at 6,542.2, helped back up by early gains on the

Dow Jones Industrial Average


Nasdaq Composite

. This was well up from the session low of 6,491.4, a fall caused by reports that

Glaxo Wellcome's


HIV drug Ziagen could produce a fatal reaction in certain patients. Glaxo's shares, which fell to a session low of

19.37 ($29.06), reflected the general market and by the close had recouped the initial losses to end up 18p, or 0.9%, at


Telecom stocks also kept the market busy as the market reacted to news that the credit rating agency

Standard & Poors

put a number of the winners of the German auction for mobile phone licenses on watch for a downgrade. Strangely,

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(VOD) - Get Vodafone Group Plc Report

, which was not on the S&P list fell 3.5, or 1.3%, to 264.5, while

British Telecom


, which was on the list, managed to close up 4p, or 0.5%, to 841. Go figure.

On the Continent,

Deutsche Telekom

(DT) - Get Dynatrace, Inc. Report

was down 2.03 euros, or 4.4%, at 44.00,

France Telecom


was 2.60 euros lower, or 2%, to 126.40 and



ended off 3.54 euros, or 8.4%, to 38.46.

As a result, most of Europe's other major stock markets finished Monday lower, as the

CAC 40

in Paris ended down 22.7, or 0.3%, at 6,571.6 and late in the German session the

Xetra Dax

in Frankfurt was off 16.9, or 0.2%, at 7,215.4. However, the Neuer Markt's tech-heavy

Nemax 50

index was 8.3 higher, or 0.2%, at 5,685.6.

U.K. technology stocks were among today's biggest casualties. The Footsie's biggest faller was optical component maker

Bookham Technology


, which gave back a large part of Friday's gains made on speculation it was in talks to be acquired by

Nortel Networks


. The stock closed down 160p, or 4.0%, at

38.00. Following close behind was IT services group


, which slid 45p, or 3.6%, to


Chip designer

ARM Holdings


escaped the rout and closed up 22p, or 3.1%, at 744, helping the

Techmark 100

index to close unchanged at 3,651.66.

Germany's biggest utility



rose 0.60 euros, or 1.1%, to 57.60 ($52.24), after the

Financial Times

reported it was considering a merger with France's

Suez Lyonnaise

, which dropped 6.10 euros, or 3.3%, to 181.60.

Most German blue-chip technology shares were lower, with


(EPC) - Get Edgewell Personal Care Co. Report

down 1.49 euros, or 1.5%, at 97.00 and software maker


(SAP) - Get SAP SE Report

3.29 euros lower, or 1.2%, at 265.50.



, however, was up 4.98 euros, or 2.9%, at 174.90.