LONDON -- Unsurprisingly after what happened on Wall Street overnight, technology stocks dragged Europe's markets lower.


FTSE 100

was down 160 to 6438.80 and the


index of leading technology stocks lowered 182.1 points, or 3.9%, to 4529.1.

Dealers marked prices down in relatively thin trading, trying to find new levels. Good news for several tech companies could not even save them.

Baltimore Technologies

was down 10.77 pounds to 85.20 pounds despite news of an Internet security deal with California's

Imperial Bank


. And

ARM Holdings


dipped 194p to 39.58 pounds, even though it confirmed a link-up with

Geo Interactive Media

. However, Geo rebounded from the early fall of 127p to stand 122p higher at 17.50 pounds.

Telcos were weaker, with



falling 30p to 11.92 pounds and

Vodafone AirTouch

(VOD) - Get Report

down 9p to 347. Vodafone's offer for


closed with 98.6% acceptances.

Rupert Murdoch's



had a miserable day Wednesday, and again today. Investors seem worried about a proposed share placing to raise 340 million pounds, which will finance BSkyB's purchase of Germany's


. Today it was down another 128p to 16.70 pounds.

Oil shares bucked the dull trend this morning, after the majors made a strong showing in the U.S. overnight following the


production agreement. Analysts at

Credit Lyonnais

expect further consolidation within the sector following


of Italy's 788 million pound agreed bid for

British Borneo

, up 3p to 71.5. There was some disappointment that the Italians hadn't made a move for

Enterprise Oil

TST Recommends

, which was unchanged at 400.

BP Amoco


rose 16p to 537 and


(SC) - Get Report

added 8p to 494.

British American Tobacco

, despite a dull market Wednesday because of U.S. litigation worries, rallied 9.5p to 308. However,

Imperial Tobacco

slipped 8p to 489 amid scrappy selling.

Peptide Therapeutics

jumped 28p to 126.5 before settling 17p higher at 115.5 as the company confirmed reports it is in talks that may lead to an offer being made for the company.


, another not long for this world if you believe the rumors, added 1.5p more to 135.

There are reports that the underperforming

Tiger Management

hedge fund is close to announcing its liquidation. The fund portfolio is thought to be long

Royal Bank of Scotland

shares and short


, among others. Royal Bank of Scotland firmed 42p to 890 on news that it has sold

Gartmore Investment Management


Nationwide Mutual Insurance

of Columbus, Ohio, for 1.03 billion pounds.

European markets were also lower, with the

Xetra Dax

in Frankfurt down 228.72 to 7636.04 and the

CAC 40

in Paris down 175.27 to 6330.21.

Tech stocks again were the culprits, with Internet service providers and telcos badly hit.

France Telecom


fell 7.5 euros to 192; Spain's


(TEF) - Get Report

, which owns 80% of the ISP



, was down 0.4 euro to 26.4, and

Deutsche Telekom

(DT) - Get Report

declined 1.28 euros to 88.22.