Frankfurt DAX: 4,764.0 (-107.71); Paris CAC: 4,256.4 (-90.69)European Report: Europe moved lower on a broad range of sectors including financials, technology, telecommunications and cars. Profit warnings and fears of more warnings rattled sentiment, and the US failed to provide support.

Financial stocks took a hammering following a profit warning from Fortis, the Benelux bank and insurance company.

Its shares tumbled 7.7 per cent to €24.80 after the company reversed forecasts for 2001 profits, saying it now expected them to fall.

The annual results are due in a month's time. The shares closed at their lowest level since late September.

Operational net profit at Fortis is now expected to fall by about 5 per cent compared with a previous estimate of a 5 per cent rise. The changed perspective is partly due to a fall in the value of Fortis's insurance investment portfolio.

ABN Amro downgraded Fortis from "buy" to "add", saying: "There were three main reasons for our positive stance: perceived defensive nature, attractive valuation and technical support from index reweighting issues. After the profit warning today, the latter two items still stand, whereas the former has become more questionable." Other banking stocks suffered from Fortis's announcement.

The Dutch bancassurer ING, a rival in the home market, fell 3.9 per cent to €26.65. Italy's IntesaBCI was off 6.7 per cent at €2.476 and Deutsche Bank down 5.5 per cent to €64.12.

France Telecom fell 4.7 per cent to €28.30 and is now just above its all-time low of last September. There was continued concern about MobilCom, the German mobile operator in which it has a 28.5 per cent stake.

Investors fear France Telecom may end up having to consolidate MobilCom's €5 billion of debt into its own debt mountain.

Orange shares were also hit, falling 5.1 per cent to €6.50.