No news would have been good news for the European technology sector. As it was, an overnight sales warning from VA Linux Systems made for a difficult start to trade yesterday. It was swiftly followed by quarterly earnings from Cisco Systems, the world's premier provider of network equipment. The figures failed to satisfy investors, already cautious as they voted in the tightest presidential election for decades.
Weaker-than-expected full-year figures from Germany's Infineon Technologies sent the semiconductor maker 6.1 per cent lower to €61.18. Investors were rattled by a warning that because of uncertainties in the worldwide personal computer markets Infineon expected weaker demand and lower prices in its memory business in the final quarter of the calendar year. Siemens, which has a 71 per cent stake in Infineon, lost 3.7 per cent to €148.25.
Disappointment with the Infineon results and concerns that they could herald downgrades for the whole European sector enveloped France's ST Microelectronics, which fell 3.9 per cent to €147.93.
The Deutsche Bank global semiconductor analyst team has warned that the overall semiconductor industry faces a marked slowdown - but not a downturn.
Rumours of a heavyweight downgrade in the data communications sector hit mobile phone makers. Nokia and Ericsson had a volatile ride, although both ended comfortably above the worst of the session.
Nokia ended off €2.08 at €48.30 after touching a low of €47.30. Ericsson fell to a low of SKr123.50 before closing down SKr4.50 at SKr126.50.
Telecoms stocks were on the defensive from the opening bell following the news that Cisco Systems's sales to the industry were possibly on the slow side.
Unexciting nine-month revenues from France Telecom and a certain amount of nervous tension at British Telecommunications ahead of tomorrow's six-month statement added to the downbeat mood.
Deutsche Telekom managed to improve 57 cents at €42.06 but most sector leaders fell back. France Telecom lost three cents at €119.70 and Telefonica 17 cents at €22.57. KPN shed 94 cents at €21.22. Swisscom eased SFr3 at SFr464 in spite of hardening rumours that Vodafone AirTouch was set to take a big stake in its cellular arm, Mobile Com.
