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Europe sours on techs, telecoms
LONDON, England (CNN) -- European markets were lower on Friday after huge gains by French health products group Fresenius Medical Care were overshadowed by weakening tech and telecom stocks. In early afternoon trading, London's FTSE 100 was down 0.7 percent to 4,154.9, while Frankfurt's electronically traded Xetra Dax lost 0.2 percent to 3,353.31 and the CAC 40 blue chip index in Paris eased 0.5 percent to 3,312.09. The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was down 0.4 percent. Trading was subdued across the UK and continental Europe with U.S. financial markets set to open for just half a session on Friday after being closed for Thursday's Thanksgiving Day holiday. Investors will be looking for news of economic growth in the coming weeks after a string a positive U.S. data. They will also be monitoring developments as U.N. weapons inspectors continue their work in Iraq. "As we go into the new year, we have to ask ourselves: 'Can this growth continue, and what is going to happen with Iraq?'" Mark Cliffe, an analyst at ING Financial Markets, told CNN. The biggest mover by midday on Friday was Fresenius Medical Care, which was up 23.4 percent to 43 euros -- off its highs for the session -- after it reached an out-of-court agreement in principle with claimants in an asbestos-related claim in the United States. "If it's a blueprint for other companies in Europe affected by asbestos claims, then it's very positive news," Nigel Cobby, managing director of European equities at JP Morgan, told Reuters. But other stocks turned negative by midday, including France Telecom (PFTE). It was down 6.5 percent to 17.57 euros as investors sold off to profit from strong gains earlier in the session. Those gains came after Thursday's announcement of 20,000 job cuts at the debt-laden operator, with shares also climbing initially on Friday after The Wall Street Journal reported the group planned to slow investments in third generation wireless networks. Vodafone Group (VOD), Europe's biggest mobile phone company, was down 2.1 percent to 121.50 pence after it said on Thursday it had no plans to raise its offer for France's Cegetel. Deutsche Telekom (FDTE) lost 1.7 percent to 12.09 euros. Vivendi Universal (PEX), Europe's biggest media company, also saw its early gains eroded by profit taking following reports on Thursday that it might get a higher bid for its 44 percent stake in cash-rich French telecom business Cegetel. Its shares were down 2.1 percent to 16.40 euros at midday. The AEX index in Amsterdam was up 0.3 percent and the SMI in Zurich inched up 0.3 percent, while Milan's MIB30 index lost 0.2 percent. The Dow Jones industrial average closed on Wednesday up 255.26 points at 8931.68 and the Nasdaq composite gained 43.51 points to 1487.94 -- its highest level in five months. The Standard & Poor's 500 index rose more than 2.8 percent, or 25.56 points, to 938.87. Stocks are expected to open flat later on Friday, with S&P 500 index futures up 0.2 point to 9438.2 on the Globex trading system, while fair value, a measure that takes account of interest costs and dividend payments, was calculated at 939.59.
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