European Closing Update: Markets Reverse Tuesday's Gains - TheStreet

LONDON -- Nortel Network's (NT) failure to meet Wall Street's highest expectations for third-quarter revenue wiped billions of value off anything remotely connected to the telecom sector in Europe.

The

FTSE 100

finished 71 points lower Wednesday, or 1.1%, at 6368, while the

Techmark 100

closed 84 points down, or 2.4%, at 3458.

Hardest hit was fiber-optic component manufacturer

Bookham Technology

(BKHM)

. This illiquid stock is volatile during the best of times, but was even more so Wednesday. Bookham was the FTSE 100's biggest loser, closing 13.3% lower at

24.24 ($35.15). However, this was a marked improvement because at one point it had slipped to a session low of

23.05.

Telecom-equipment maker

Marconi

(MCNQY)

also received a kicking, with the shares closing 8.4% lower at 870p.

In the telecom sector,

Vodafone

(VOD) - Get Report

finished down 2.5% at 278p and

Colt Telecom

(COLTY)

was down 4.0% at

21.88.

British Telecom

(BTY)

ended down 4.3% at 754p following reports that talks with

AT&T

(T) - Get Report

about combining their business services have ended without agreement.

IT-services stocks

Logica

,

Sema

and

CMG

all came under

Commerzbank's

scrutiny. The broker decided it didn't like what it saw and cut its ratings on all three. As a result, Logica plunged 7.2% to

20.20, Sema shed 3.0% to 980, and CMG fell 2.2% to

11.90.

Normally drugs can help change the mood when all else is looking despondent, but Wednesday the sector was weighed down by

AstraZeneca

(AZN) - Get Report

, which fell 80p to

31.70 after lowering its estimates for full-year revenue. This fed through to

Glaxo Wellcome

(GLX)

, down 18p to

20.02, and

SmithKline Beecham

(SBH) - Get Report

, down 11p to 912.

Europe's other stock markets also finished Wednesday lower, as the

CAC-40

in Paris ended down 45.8, or 0.7%, at 6277.9 and the

Xetra Dax

in Frankfurt was off 34.9, or 0.5%, at 6767.9 late in German trading. The Neuer Markt's tech-heavy

Nemax 50

index was down 71.7, or 1.5%, at 4634.7.

In Paris, telecom-equipment maker

Alcatel

(ALA)

tanked 6.50 euros, or 8%, to 74.40 ($62.26), after rival

Nortel

reported slower sales.

Telecom operators were mostly higher, however, as

France Telecom

(FTE)

ended up 1.90 euros, or 1.6%, to 123.00 and

Deutsche Telekom

(DT) - Get Report

rose 0.40 euro, or 1%, to 42.60.

Technology shares rolled back some of Tuesday's gains, as

SAP

(SAP) - Get Report

fell 3.75 euros, or 1.6%, to 230.25,

Epcos

(EPC) - Get Report

dropped 1.00 euro, or 1.1%, to 88.50, and

Infineon

(IFX)

was down 2.21 euros, or 4.3%, at 48.99.

And ahead of its third-quarter earnings Thursday,

DaimlerChrysler

(DCX)

fell 1.15 euros, or 2.2%, to 52.35. Rival

Volkswagen

(VLKAY)

rose 0.05 euro, or 0.1%, to 53.95.