LONDON -- It didn't turn out to be quite the day most people were anticipating.

Europe's markets initially rose when it looked as though George Bush was destined for the White House, but when the uncertainty kicked in, the markets reversed their earlier gains.

The

FTSE 100

closed up just 10.5 points to 6477.4, while on the Continent the

CAC-40

in Paris closed down 50.0 points, or 0.8%, at 6336.0 and the

Xetra Dax

in Frankfurt was off 50.1, or 0.7%, at 7026.1 late in German trading. The

Neuer Markt's

tech-heavy

Nemax 50

index was down 157.3, or 3.4%, at 4440.9.

In the telecom sector,

British Telecom

(BTY)

rose 19.5p to 788 ($11.43), which makes three successive sessions in the black for the former monopoly. The telco will put out its first-half figures Thursday, but more importantly, it may well give some indication about its restructuring plans.

Vodafone

(VOD) - Get Report

announced it has taken a 25% stake in

Swisscom's

(SCM) - Get Report

mobile arm. Vodafone will now get exposure to next week's third-generation mobile license auction in Switzerland, extending its 3G European footprint. The share price was slightly in the red by 1.75p to 256.25, most likely a result of profit-taking from Tuesday's rise.

Telewest

(TWSTY)

gained nothing from the announcement by regulators that

Microsoft

(MSFT) - Get Report

will be allowed to take a holding in the company. The move should help the troubled cable company, but the stock dipped 1.5p to 119.75.

In Europe,

France Telecom

(FTE)

closed down 4.30 euros, or 3.6%, at 115.40 euros, amid news it would buy a stake in another Swiss wireless operator,

Orange

, for 1.6 billion euros from German utility

E.ON

(EON)

. E.ON shares rose 0.93 euro, or 1.5%, to 64.20.

Construction and telecom group

Bouygues

(BWG) - Get Report

fell 2.65 euros, or 4.3%, to 59.60, after being downgraded to a hold by

ABN Amro

.

One of several big U.K. tech players to release results today was

Baltimore Technologies

. Shares rose as much as 3.5% after the figures beat expectations, but settled in the end for a more modest gain of 8.5p to 524.

Another big tech outfit unveiling figures was optical component maker

Bookham Technology

(BKHM)

. But instead of heaping praise on the company for its solid set of third-quarter results, investors sold the shares down 144p, more than 6.3%, to

21.39.

Siemens

(SMAWY)

tanked 7.05 euros, or 4.8%, to 141.15 ($121.43), as the German electronics giant posted record annual earnings, but said the outlook for growth next year looked weak.

Other big techs were also lower, as

Infineon

(IFX)

fell 3.15 euros, or 6.1%, to 48.30 and

STMicroelectronics

(STM) - Get Report

closed down 1.55 euros, or 2.7%, to 55.50.