German equities mirrored the European trend, rising strongly in Frankfurt at the start only to fall back from mid-morning onwards and stay negative for the rest of the session.
Turnover was below average as investors fretted about direction on Wall Street after a two-day advance of 459 points at the end of last week. At the close, the Xetra DAX index was off 49.39 at 4,791.43.
Telecoms were dull. Mannesmann gave up €2.04 at €117.86 while Mobilcom, one-time darling of the Neuer Markt, slipped a further €17 to €275.
The news that Siemens is to invest $1 billion (€916.75 million) in the US and not the $3 billion that had been rumoured last week prompted profit-taking. The shares lost €1.65 at €57.70.
Insurers, a weak market lately following negative comment on the sector, continued to slip. Allianz came off €4.50 at €278.50 and Munich Re lost €1.50 at €185.50.
Bayer and BASF pushed higher ahead of results. The former added 20 cents at €32.35 and BASF improved 9 cents at €31.15.
Paris woke up with a hangover after Friday's 2.4 per cent surge. The CAC-40 plunged nearly 1 per cent in morning trading before recovering in the afternoon. The blue-chip index closed 13.59 or 0.3 per cent lower at 4,175.97, with most stocks moving in a narrow range.
High-tech companies were ahead of the pack. Cap Gemini added €5 to €165.50 and STMicroelectronics rose €3.35 or 4.1 per cent to €86.
Banks had a mixed day after last week's gains. BNP retreated €1.60 to €78.40 and CCF was 45 cents lower to €83.45 while Societe Generale added 40 cents to €148.10.
Alcatel and Thomson CSF both slid ahead of their 1998 results due later this week. Alcatel shed €2.70 to €117.10 while Thomson CSF conceded 38 cents to €30.30.
Amsterdam finished 4.02 lower at 525.52 on the AEX index after touching a session best of 534.60.
News of a $2.6 billion US acquisition that will be earnings enhancing `immediately' sent Fortis up 40 cents to €35.05.
Wolters Kluwer jumped €2.85 to €174.45 after a note from Morgan Stanley Dean Witter sparked switching in the media sector. The broker upgraded Kluwer to `outperform' but downgraded Elsevier, which fell 70 cents or 4.8 per cent to €14, to `underperform'.
Milan was weaker although foreign and domestic demand supported financials, particularly BCI and INA. The real time Mibtel index ended lower at 24,325.
BCI was one of only three blue-chip outperformers, closing 4.5 per cent higher at €6.16, off a high of €6.28.
Telecom Italia lost €1.5 per cent to €9.55 and Olivetti was 4.2 per cent lower at 2.86.
