A profits warning from Zurich Financial Services, its fourth this year, left Europe's third-largest insurer reeling but sent only muted tremors through the European sector on a day of busy window dressing.

Zurich Financial's shares fell a full 10 per cent in early response to the news, but later recovered some of the loss to close down 4.8 per cent at 394 Swiss francs.

German insurers initially felt the pressure from Zurich's report. Allianz edged 0.2 per cent lower to €252.40 but Munich Re picked up to close 1.4 per cent higher, at €297.50. Unlike Zurich Financial, both groups have said they will still make a profit in 2001, despite claims resulting from September 11th.

The TMTs were firmer, although there were no obvious headline results to drive the market. Some traders reported support from speculators closing their short positions following a few days of falling prices.

Technology blue-chips gained 2-3 per cent. Nokia was up 2.6 per cent to €27.38, Siemens up 2.6 per cent to €70.78 and Philips up 2.7 per cent to €32.15. Companies in the computer services sector such as Cap Gemini and SAP traded in and out of the black. Cap Gemini ended 1.5 per cent lower at €77.90.

The Dutch computer services company Getronics announced it had issued 61 million new shares in exchange for two of its convertible bonds, bringing its net debt down by a quarter. The company lowered the conversion price on the 2004 bond from €14.53 to €4.60 and on the 2005 one from €36.98 to €5.10 to achieve the swap.

STMicroelectronics led the way with a 2.6 per cent rise to €35.07 while Infineon was up 0.9 per cent to €22.40. Infineon named three Taiwanese chip companies - Mosel Vitelic, Winbond Electronics and Nanya Technologies - as possible partners in D-RAM manufacture following the collapse of its planned tie-up with Toshiba.