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European Stocks Fall

January 4, 2000

LONDON (AP) _ European stocks notched record falls Tuesday _ with technology stocks bearing the brunt _ as investors anticipating an increase in U.S. interest rates sold out across the board.

Both the Dow Jones Stoxx 50 index and the Dow Jones Euro Stoxx 50 index made record point falls, down 211.8 points at 4,503.8 and 191.4 points at 4,657.8, respectively.

The Dow Jones technology sector index ended down 5.2 percent, energy down 4.8 percent and telecommunications down 4.4 percent.

The Dow Jones Stoxx Index of 606 shares in European companies fell 14.99 points, or 4 percent, to 362.70. The Dow Jones Euro Stoxx Index, which tracks 313 shares in companies in countries that joined the single currency, fell 15.72 points to 396.75.

Analysts said that, with millennium bug fears out of the way, investors returned their focus to interest rates, due to be reviewed in early February. U.S. farm payroll figures that are to be released Friday could provide a good indication of the likely outcome.

Investors also appeared to be taking their profits from Internet stocks while waiting to see how such companies fare, amid the perception that some such shares ended last year overvalued.

In domestic markets, London’s FTSE-100 Share Index fell 3.8 percent, or 264.3 points, to 6,665.9, the index’s biggest-ever point loss. Provisional volume was 1.12 billion shares.

In Amsterdam, the AEX Index closed 4.9 percent lower to 642.45, with by far the worst performer being Dutch software company Baan, losing 32 percent to euros 10.10 following the chief executive’s resignation and fourth-quarter restructuring charges.

Frankfurt’s Xetra DAX Index fell 2.4 percent to 6,586.95, with SAP shares falling 3.9 percent to 580.00 euros after the disastrous fourth quarter for rival Baan sparked fears that SAP could suffer a similar fate.

In Paris, the CAC-40 Index fell 4.2 percent to 5,672.02, and Milan’s MIBtel Index lost 2.3 percent to 40,468.


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