Europe ends week in mixed mood

LONDON, England (CNN) -- European markets ended the week in a mixed mood as declines in banking and tech stocks offset gains in the tobacco sector on Friday.

London's FTSE 100 edged up 0.8 percent to 4,075.5, after sliding 4.7 percent in the previous session as U.S. data showed the world's biggest economy could be heading for a "double-dip" recession.

The CAC 40 blue chip index in Paris gained 0.1 percent to 3,245.37, after plunging 5.1 percent on Thursday. Frankfurt's electronically traded Xetra Dax was down 1.1 percent to 3,567.76 in late trading (the German market was set to close at 1800 GMT).

The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was down 0.1 percent. The electrical and electronics, information technology and banking sub-sectors led the declines, while tobacco and utilities stocks were higher.

Britain's third biggest bank, Lloyds TSB Group (LLOY), was basically flat at 5735 pence -- after falling more than 4 percent earlier in the session -- as it posted a slight decline in profit and warned that the operating environment remained difficult in the second half. It increased provisions for possible bad debts by 48 percent to £479 million. (Full story)

Other UK banks were also lower in early afternoon trading on Friday. Barclays (BARC) fell 5 percent to 424.59 pence, Standard Chartered (STAN) lost 4 percent to 605 pence and Royal Bank of Scotland (RBS) declined 3.6 percent to 1,470 pence.

Deutsche Bank (FDBK), Germany's biggest, fell 1 percent to 58.10 euros. Its profits sank 75 percent on Thursday as it too set money aside money for a string of bankruptcies, including WorldCom.

Commerzbank (CBK) was down 7.3 percent to 10.33 pence, reinsurer Allianz (ALZ), which owns Dresdner Bank, lost 5.2 percent to 131.80 euros and HVB Group (FHVM) dropped 5.1 percent to 19.42 euros in late Frankfurt trading.

But French banking stocks rose. Societe Generale (PGLE) gained 7.1 percent to 55.90 euros despite reporting a 41 percent slide in net profit in the second quarter, hit by 265 million euros in provisions for a decline in the value of its portfolio of industrial holdings. (Full story)

And Credit Lyonnais (PCL) rose 3.1 percent to 39.30 euros as profit slid 12.9 percent. But both banks results were better than analysts' expectations.

British Airways (BAY) slid 6.7 percent to 140 pence after Europe's biggest airline warned full-year sales would miss last years target. (Full Story)

Technology stocks came under pressure after the U.S. Nasdaq composite slid 3.6 percent on Thursday.

Nokia, the world's biggest mobile phone maker, fell 2.6 percent to 11.79 euros. Its Swedish rival Ericsson, the world's biggest maker of wireless infrastructure that powers communications, dropped 6.1 percent to 9.30 crowns.

STMicroelectronics (PSTM), Europe's biggest chipmaker, declined 6.3 percent to 19.40 euros after investment bank Merrill Lynch downgraded it recommendation on the stock to "neutral" from "strong buy." The bank also lowered ST's 2002 and 2003 earnings per share forecasts by 23 percent to $0.48 and $0.87 respectively.

Rival Infineon Technologies (FIFX) fell 5.1 percent to 12.77 euros, while No. 3 Philips Electronics lost more than 5 percent to 19.20 euros.

Siemens (FSIE), Europe's largest electronics and engineering company, was down 4.4 percent to 45.78 euros after reports that it was considering cutting as many as 5,000 more jobs, at its telecom and mobile phone businesses. (Full story)

At the positive end of the markets, the tobacco sectors saw strong gains as investors turned to so-called old economy stocks. UK tobacco group Gallaher (GLH) rose 6.1 percent to 630 pence, while rival British American Tobacco (BATS) added 2.8 percent to 723.11 pence.

The AEX index in Amsterdam edged down 1.7 percent and Milan's MIB30 index dipped 0.7 percent, while the SMI in Zurich declined 1.2 percent.