European equities closed the week modestly lower, although the flight to cyclicals remained the dominant theme. The oil and gas, and forestry and paper sectors both registered rises on the day of more than 4 per cent.
The FTSE Eurobloc 100 index, which covers the leading companies in states which have joined the euro, closed 4.73 weaker at 1,050.97. The FTSE Eurotop 100 index, covering both euro zone and non-euro zone states, slipped 23.36 to 2,977.34, while the broader FTSE Eurotop 300 index closed 4.25 lower to 1,289.14.
Frankfurt reversed early gains to close with the Xetra DAX index off 46.70 at 5,143.02 on the day and little changed on the week.
Man pushed ahead strongly, adding €2.05 at €30.60 after JP Morgan took a bullish stance on the truck and machinery maker's earnings outlook. Deutsche Telekom lost a further 5 cents at €38.15 as investors reacted cooly to reports of a potential merger with Telecom Italia. In financials, Munich Re shed €9.26 at €183.
Paris suffered more losses but recovered in the last few minutes of trading following a large order in selected stocks. The CAC-40 closed down 9.73 or 0.2 per cent to 4,300.91.
The unusual order drove France Telecom sharply higher. The stock had first dipped 4.2 per cent on unconfirmed reports of merger talks between Telecom Italia and Deutsche Telekom. It then jumped to 80.9 cents minutes before the close, ending €2.90 or 3.7 per cent higher.
Meanwhile, Saint-Gobain saw its earlier gain instantly turn into a €5.90 or 3.7 per cent loss to €153. In the telecom sector, Alcatel surged €7.90 or 6.8 per cent to €124.80 after it said it was in talks to develop its screen phone product in the US.
Amsterdam added 6.24 to 548.44 on the AEX index on strong performance from a range of heavyweight stocks. Philips gained €4.70 or 6.4 per cent to €78.50 while Royal Dutch added €2.45 at €52. ABN Amro rose 80 cents to €20.45. 25.4 million shares traded.
Madrid plunged 2 per cent after the government announced a batch of utility tariff cuts to curb inflation. Telefonica went down on the news, losing €1.71 to €40.95. The general index settled 17.46 lower to 870.10.
Milan edged lower, erasing early gains influenced by the expiry of options on the index and on individual stocks. The Mibtel index finished 50 weaker at 24,883.
Telecom Italia gathered strength, rising 3 per cent to €9.88, although some analysts expressed scepticism over a Financial Times report about plans for a merger with Deutsche Telekom to fend off Olivetti's hostile takeover offer. Olivetti slipped 0.3 per cent to 2.95.
