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European Closing Update: Markets End Mixed

London falls as Invensys tanks 35% after profits warning.
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LONDON -- The FTSE 100 spent most of the day in the red but managed to claw back most of the losses after a bold opening by the Nasdaq, a rise in oil shares and a decision by the Bank of England to keep interest rates steady.

The FTSE 100 closed down just 6 points at 6689, while the

Techmark 100

finished down 4 points at 4025.

The day got off to a bad start with the engineering and computer software group

Invensys

announcing a profit warning. This infuriated investors since it was only a few months ago that Invensys decided to buy the ailing Dutch software company

Baan

for what was considered a much-too-generous price.

Invensys shares plunged 93.25 pence, or 35.7% to 169.75 ($2.44), with 190 million shares changing hands by midafternoon. More than

3 billion was wiped off the market capitalisation in the process.

In the telecom sector,

British Telecom

(BTY)

recovered from an intraday low of 822p, but still ended down 17p, or 2.0%, to 833p. It was a similar story for

Cable & Wireless

(CWP)

, which saw its shares slip 64p, or 5.0%, to

12.25. However,

Vodafone

(VOD) - Get Report

managed to close up 9p, or 3.2%, at 291.

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Oil stocks followed the crude higher.

BP

(BPA)

reached a record high of 682p, before slipping back to stand at 661.5, a gain of 4.5p or 0.7%.

Shell

(SC) - Get Report

closed up 10p, or 1.7%, to 616.

On the Continent, the

CAC 40

in Paris closed up 37 points, or 0.5%, to 6834. Late in the German session, the

Xetra Dax

in Frankfurt was up 46 points, or 0.6%, at 7379 and the Neuer Markt's tech-heavy

Nemax 50

index was up 8 points to 5705.

France Telecom

(FTE)

was down 3.50 euros, or 2.4%, at 140.00 ($121.80) despite reporting solid first-half results after the market close Wednesday.

Deutsche Telekom

(DT) - Get Report

was also lower even though its proposed merger with

VoiceStream

(VSTR)

cleared Justice Department scrutiny. The shares were down 0.78 euro, or 1.7%, at 45.78.