European technology stocks took some comfort from the IBM results overnight but share price movements were relatively subdued. Ericsson was 1.7 per cent higher but Nokia was little changed.

SAP slipped back 2 per cent to €185.50 as investors took profits. However, there were some striking share price movements among smaller German software companies. IDS Sheer jumped 16 per cent to €17.37 after its posted a surge in pre-tax profit and sales for 2000. Softmatic leaped 58 per cent to €2.65 on speculative buying.

ASM Lithography slipped 2 per cent to €29.36 in spite of fullyear results that exceeded expectations.

Telecoms were also mixed. France Telecom rose €3.9 per cent to €96.40 and Telecom Italia was 0.8 per cent up at €13.43 but Telefonica and KPN were a little lower. Deutsche Telekom gained 1 per cent to €38.27, announcing it had reached a pact with the US authorities over its proposed acquisition of VoiceStream.

In contrast, Sonera suffered a setback, falling 9 per cent to €21.29 after releasing results for 2000 that were below forecast, although some brokers said the selling was overdone.

Internet company LetsBuyIt.com was back in the doghouse, falling 43 per cent to a new lifetime low of 26 cents, compared with a high last July of €6.45.

Oils continued to wilt amid downbeat comment on the sector.

The latest shift in sentiment back to TMT stocks made for an uncomfortable day in financials, notably banks which ran into a flurry of selling.