Technology stocks turned tail and gave up their gains of the day as new evidence of an economic slowdown hit the market.

Telecommunications equipment maker Alcatel gave back all of Tuesday's gains and then some as the worries about the possibility of taking over Lucent continued to weigh on the stock. Alcatel closed down 5.3 per cent at €34.25. Deutsche Telekom fell 1.1 per cent to €26.57 after its first-quarter results came in line with expectations. Operating profit rose 6.6 per cent to €3.6 billion.

Swiss industrial group Sulzer remained under pressure on continuing worries over Monday's news that the 74 per cent owned Sulzer Medica was not adequately insured for the cost of replacing more than 1,700 faulty hip implants. Sulzer lost another 4.4 per cent to SFr787, taking losses this week to 21 per cent. Medica lost 9.2 per cent to SFr222.50, taking its losses since last Friday's close to almost 33 per cent.

Credit Lyonnais dropped 2.6 per cent to €41.30 ahead of first-quarter results due after the market closed. The stock came under pressure earlier in the week when it was excluded from the Morgan Stanley Capital International index reweighting.

French champagne group Laurent Perrier racked up gains of 6.3 per cent at €34 in spite of posting a dip in 2000-2001 profits. The group said it expected to pull through the post-millennium difficulties faster than its peers and would invest its way to renewed growth.

Tyremakers Michelin and Continental shot ahead on contract optimism as both groups declared themselves to be in "talks" with Ford which recently parted company with Bridgestone. Continental rose 3.6 per cent to €17.35 and Michelin was strong for the second day running, adding 3.5 per cent at €42.40 for a two-day gain of 8.8 per cent.