Trampled on by poor earnings statements, European equities ended a week of net selling on a sour note. The FTSE Eurotop index fell to within 40 points of its low for the year.

DaimlerChrysler provided some relief, turning in stronger than expected second-quarter figures and reasserting its long-held, but increasingly questioned, view that the Chrysler operations would scrape back to break even in 2002.

On an otherwise dull day for motor stocks, Daimler finished 2.2 per cent higher at #57.49. Volkswagen and Renault, both of which report next week, came off 1.5 per cent at #50.98 and 1 per cent at #52.30 respectively. Fiat, which reports on Wednesday, added 1.5 per cent at #24.54.

Grim results statements overnight from Microsoft and Nortel Networks combined with fresh evidence (from Ericsson) that trading in the mobile phone equipment industry is as tough as ever pushed TMT stocks lower.

Among telecoms equipment suppliers Alcatel fell 7.3 per cent to #18.25 as Dresdner Kleinwort Wasserstein lowered its revenue expectations ahead of this week's results statement. Nokia, up 12.8 per cent on Thursday, fell 4.8 per cent to #21.89. Ericsson lost 2 per cent at SKr50.

The heavyweight operators had an equally torrid time. France Telecom, which publishes second-quarter figures next week, fell 2 per cent to #48.02 as Mobilcom, its cellular arm, announced weak subscriber figures. KPN came off 6.8 per cent at 5.36.

French computer consultant Cap Gemini, widely expected to announce a profits warning before the end of the summer, took a tumble as it denied the rumours and maintained its sales and earnings forecasts for 2001. The shares fell 4 per cent to #72.45 as JP Morgan cut its forecasts for 2001 and 2002.