Strong US inflation data and another warning about equities' risk from Alan Greenspan, the head of the US central bank, sent European stock markets lower from the opening bell.
The FTSE Eurobloc 100 index fell 1.4 per cent to 1,050.75 for a net decline on the week of 3.7 per cent. The FTSE Eurotop 100 index lost 1.9 per cent at 2,869.94 and the FTSE Eurotop 300 index 1.8 per cent at 1,256.18.
Frankfurt ended 36.06 lower at 5,184.23 on the Xetra DAX index, down 4.4 per cent on the week but 80 points above the day's low.
Financials led the way lower after strong US inflation data heightened interest rate fears. Dresdner Bank fell €1.85 or 4.1 per cent at €43.15. Deutsche Bank came off €1.18 at €63.70.
Renewed concerns about its UK Rover operations helped send BMW down 37 cents at €27.63. Software leader SAP, down 9 per cent in two days following a profits warning, rallied modestly, adding 20 cents at €398.20.
Heidelberger Zement crashed lower on of a share issue to finance the purchase of the outstanding 44 per cent of CBR of Belgium. The stock, which stood at 98 three weeks ago, fell 13.1 per cent or €11.30 to €74.70.
Paris ended above the worst of the session. Against a low of 4,487.11, the CAC 40 index fell 59.21 at 4,524.42 for a net decline on the week of 4.2 per cent.
TotalFina shed €3.60 at €113.5 as the group's offer for Elf Aquitaine closed. Alcatel fell €5.210 or 3.9 per cent at €127.8. Motor giant Renault was a rare firm feature, adding €1 at €51.
Madrid featured a 4.2 per cent tumble in Telefonica as the government decided to trim the company's local call rates as part of a bid to trim inflation. The Telefonica shares lost 64 cents to €14.65 as the general index dropped €14.95 to €842.55.
Amsterdam gave up 9.28 at 537.97 on the AEX index after a tough session for financials. Not helped by derivatives expiries and unnerved by rate concerns, ABN Amro fell 23 cents to €21.73 in 17.9 million shares traded. Aegon lost €1.15 at €80.25 and Fortis 54 cents at €30.71. Among industrial heavyweights, Royal Dutch shed €1.15 at €53.70 and Philips 55 cents at €89.85.
Helsinki was hit by a sharp fall in telecom equipment maker Nokia, which sank in response to the US producer price data. Nokia's shares sank €3.11 to €86, dragging the Hex index down 222.55 or 2.8 per cent to 7,768.89.
Analysts noted that the fall had left the share at a two-week low. It had lost its recent upward momentum ahead of third quarter earnings due next Thursday.
