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European Closing Update: Markets End Mixed

London falls as Invensys tanks 35% after profits warning.

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


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


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


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


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

12.25. However,


(VOD) - Get Report

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

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Oil stocks followed the crude higher.



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


(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


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



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