A slide in the value of telecommunications and technology stocks is being blamed for the extension of losses in European equity markets.
The losses follow this morning’s cautious outlook from Motorola on foot of the publication of the company’s fourth quarter results yesterday. Although the results were better than had been forecast, the company was pessimistic about sales for the first quarter. It predicts that sales will be around US$6 to US$ 6.2bn, with earnings of up to 2 cents per share.
The FTSE Europe 100 was this morning 1.4pc lower at 1,811.7, extending losses after plunging to a three-month low.
The slide in European stocks follows the 1.7pc drop on the Dow Jones Industrial Average and a .9pc fall in the NASDAQ.
Finnish handset market leader, Nokia fell 2.5pc, Ericsson was 3.4pc less and Alcatel fell by 3.4pc. Siemens fell 1.6pc.
It’s thought the value of tech stocks plummeted because investors were sitting tight ahead of key earnings releases from market leaders such as Nokia and Siemens tomorrow.
Although Nokia’s fourth quarter results are expected to be broadly in line with the expected EPS (earnings per share) of 23-25 cent, what will be key will be the company’s forecast for sales of mobile phones.
By Suzanne Byrne