Europe ends in the red

LONDON, England (CNN) -- European markets closed on Friday mired in red as investors pocketed profits from recent gains in tech and telecom stocks, spurred on by early declines on Wall Street.

Many investors also sold out the market ahead of a UK bank holiday on Monday.

London's FTSE 100 fell 1 percent to 4,389.8 and the CAC 40 blue chip index in Paris lost 1.9 percent to 3,526.09, while Frankfurt's electronically traded Xetra Dax was down 2 percent to 3,829.8 in late trading (the German markets was set to close at 1800 GMT).

The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, lost 1.3 percent -- led lower by the information technology, computer and telecom sub-sectors.

Technology stocks were hit across the Continent after German newspapers said Siemens (SIE) could cut more jobs at its telecom business. Handelsblatt and Financial Times Deutschland quoted chief financial officer Heinz-Joachim Neubuerger as saying: "The next business year will be even tougher than the current one." (Full story)

Siemens stock was down 2.2 percent to 51.60 euros in late Frankfurt trading. Europe's biggest telecommunication maker Alcatel (PCGE) dropped 5.1 percent to 5.92 euros in Paris.

Nokia, the world's biggest mobile phone maker, fell 3.5 percent to 14.52 euros in Helsinki, while Swedish rival Ericsson was down 9 percent to 7.30 crowns -- after soaring 67 percent this week -- as investors cashed in ahead of the weekend.

France Telecom (PFTE) lost 6.1 percent to 15.68 euros, while mm02 (OOM) fell 5.1 percent to 50.75 pence -- making it the top decliner in London.

Chipmakers also succumbed to some profit taking. Europe's biggest chipmaker STMicroelectronics (PSTM) slid 5.5 percent to 22.45 euros and German rival Infineon Technologies (FIFX) was down 5.4 percent to 12.76 euros in late Frankfurt trading, while Philips Electronics, Europe's No. 3, declined 3.3 percent to 23.55 euros.

Insurance stocks were also lower, led by French giant Axa (AXA), which lost 5.9 percent to 15.48 euros, and Swiss rival Zurich Financial, which fell 7.3 percent to 172 francs.

The AEX index in Amsterdam fell 1.4 percent and Milan's MIB30 index lost 1.2 percent, while the SMI in Zurich declined 0.3 percent.