Monday saw bad news in Europe for telecommunications stocks. British Airways stated losses for the quarter, and investors once again seemed worried over debts, accounting practices and the validity of earnings news. As well as the UK falling, the CAC 40 in Paris and the German DAX both fell by almost 1.5% for the day.
Tuesday again saw US markets impact on Europe. Losses were seen, particularly in the technology, telecommunications and media stock areas due to poor earnings and unemployment news. The CAC 40 ended with a 2% loss and the DAX did slightly better at just over 1.5%.
Wednesday saw early losses dragged back but not enough to end flat or with a gain. The news from Allied Irish banks hit Europe, just as it had the UK. Possible fraud from Allfirst, their US subsidiary, regarding foreign exchange was reported and could cost the company $750 million.
Thursday saw the European Central Bank leave interest rates alone, as the Bank of England had also done. Gains were seen in most European blue chip markets thanks to a turnaround for telecommunications and a rather large boost from insurance companies such as AXA, Prudential and German Allianz. The DAX closed with the best gain of almost 1.5%. The CAC 40 came in lower at 0.5%.
For a second day running, European blue chip markets managed to end the week on a gain but the technology stocks overall were not so lucky. This was due to poor profit forecasts from giants such as Philips making investors uneasy on Friday.