European Midday Update: Markets Dip After Apple Warning - TheStreet

LONDON -- The market can't seem to make up its mind about what to do with an ugly profit warning from

Apple

. It's a case of stop, then go, then stop again. The

FTSE 100

was recently down 5.30 points at 6258.80 and the

Techmark

was higher by 18.86 points at 3734.10.

However, clearly the punters are worried about the implications for the U.K. tech sector from Apple's announcement, given that it follows similar warnings from

Sprint

( FON) and

Intel

(INTC) - Get Report

. Apple's fourth-quarter results could be as much as 33% short of expectations due to a sales slowdown. In the U.S., the shares plunged 40% in overnight trade.

Leading the gainer today is Old Economy stalwart

British American Tobacco

(BTI) - Get Report

, which jumped over 7% to 431.5p ($6.31) as investors celebrated an overnight landmark court victory for the tobacco industry in the U.S..

In the New Economy, the telecom heavyweights, led by

Vodafone AirTouch

(VOD) - Get Report

, led the way up. The wireless giant gained on talk that it is close to selling

Infostrada

, its Italian Internet business, for

12 billion in loan notes and cash.

Enel

, the Italian electricity utility, is said to be the buyer. Vodafone shares rose 4.5p to 252.75.

British Telecom

( BTY) also rose, gaining 5.5p to 740.5.

Elsewhere, the rot in Apple failed to spread to U.K. techs.

Logica

jumped 39p to

21.69.

Bookham Technology

( BKHM) rose 2.5% to

30.87.

Freeserve

(FREE)

pushed higher 5p to 240 as rumors resurfaced that parent

Dixons

is getting ready to reduce its holding in the Internet service provider.

The fact that crude oil has fallen to a seven-week low following remarks made by giant oil producer Saudi Arabia that it would pump up production in order to stabilize world oil prices, is also helping the overall market.

But while other sectors gain on this news, it is not surprising that the move higher gave oil stocks a wide berth.

BP Amoco

( BPA) was down 4.5p to 590 and

Shell

(SC) - Get Report

came off 3.5p to 550.5.

Europe's other major stock markets were modestly lower Friday after Denmark's decision not to join the euro. The

CAC 40

in Paris was down 43.53 at 6267.50 and the

Xetra Dax

in Frankfurt was down 17.21 at 6815.5. The Neuer Markt's technology-heavy

Nemax 50

index was up 33.2 at 5241.9.

Big techs were also largely shrugging off Apple's warning, with

STMicroelectronics

(STM) - Get Report

up 0.55 euros at 58.55 ($51.47) and

Infineon

( IFX) up 1.69 euros at 56.74, however,

Epcos

(EPC) - Get Report

was down 0.64 euros at 92.86.

Telecoms were mixed, as

Deutsche Telekom

( DT) fell 0.16 euros to 39.46,

Telefonica

(TEF) - Get Report

was up 0.44 euros at 22.88 and

France Telecom

(FTE)

was up 1.20 euros at 121.10.

Telco equipment maker

Alcatel

( ALA) fell 2.50 euros 72.85.