Denmark's decision to reject euro membership had minimal impact on European markets where Apple Computer's profits warning was of more pressing concern.

Copenhagen overcame early weakness to close 1.5 per cent higher as the central bank raised key interest rates to support the krone. The KFX index picked up 5.05 to 334.88.

Zurich came under heavy pressure as CS Group tumbled 6.2 per cent - its biggest one-day fall for more than three years - even though the bank denied rumours, circulating in recent days, that it had issued a profits warning.

However, the group reiterated that market conditions would be less favourable in the second half of the year.

CS Group finished 21.50 Swiss francs lower at SFr323 as it also told shareholders it was buying up its own shares in the market to cover employee stock options and would continue to do so.

Frankfurt featured action in Gigabell which soared 67 per cent after the Finnish Internet service provider Saunalahti took a 56 per cent stake, rescuing the German group from insolvency. Gigabell closed €2.25 higher at €5.59.

Among blue-chip tech stocks, semiconductor manufacturer Infineon Technologies failed to hold on to early gains, closing 28 cents lower at €54.77 in line with broad weakness in the sector in the wake of the Apple warning.

Siemens lost €5.46 to €145.99 and Epcos was €1.35 lower at €92.15. BMW rose 95 cents to a high for the year of €38.90, boosted by technical factors and recent positive news.

At 5.30 p.m., local time, the Xetra DAX index was 45.79 lower at 6,786.97.

Paris ended lower after a rally collapsed under the weight of selling in Alcatel shares. The CAC-40 index lost 0.7 per cent to 6,266.63.

Telecoms equipment maker Alcatel was the most heavily traded share, falling 3.8 per cent to €72.50 amid rumours of a placement by the asset management arm of a major US bank.

Amsterdam rose 0.4 per cent to 661.52 for a rise of 1.3 per cent on the week. Tech shares held on to gains in spite of the Nasdaq's weak opening. Philips rose 0.8 per cent to €48.77 and Getronics 2.3 per cent to €11.38.