LONDON -- European markets looked schizophrenic Wednesday morning as investors appeared to be of two minds.

In the U.K., by midday the

FTSE 100

was down 15.10 points to 6737.40, while the

Techmark 100

was down 36 points to 4067.

The mood of the market was encapsulated by the action in blue-chip IT stocks




. Logica fell 28p to

21.47 ($31.13) after what looked like very strong pretax results, as analysts apparently fear there's something nasty lurking in the figures. A similar fate befell Sema on Tuesday, but today bargain hunters were picking up the stock. Technically, major support is placed around the

10.00 level, which makes buying attractive from a risk/reward perspective. The shares recovered 23p to


Telecom stocks were traded heavily as

British Telecom


fell on news that

Moody's Investors Service

has cut the company's credit rating from AA1 to A2. Although Moody's says BT's outlook is now "stable," the shares slumped 30p to 874.


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managed to shrug off talk that

Hutchison Whampoa

may sell its remaining 3.4% stake in the company. The most heavily weighted stock in the blue-chip index was down just 1p to 291. Analysts at

UBS Warburg

are bullish on the stock, saying: "We think that Vodafone has turned a major corner -- acting in a way that should improve its ability to create value in the world of cellular once subscriber growth has peaked."

Europe's Continental bourses were mixed, as the

CAC 40

in Paris was down 24.84 to 6831.92, but the

Xetra Dax

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in Frankfurt was up 8.05 to 7403.12. The

Neuer Markt's


Nemax 50

index was 31.6 higher to 6395.8.

German tech and telecom shares were once again weighing on the Dax, with


down 2.57 euros to 185.43 ($165.09) and


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6.88 euros lower to 300.71.

Deutsche Telekom

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slipped 0.35 euro to 46.72.

Elsewhere, telcos fared better, as


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rose 0.19 euro to 23.94 and

France Telecom


gained 0.20 euro to 144.70.

Paris-listed network services firm


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rose 1.3 euros to 53.00, amid reports the company was again in merger talks with




French oil company

Total Fina Elf

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fell 1.20 euros to 176.30, despite reporting that first-half profit more than doubled.