European markets end week lower as bad technology news spooks investors

European stock markets ended the week sharply lower on Friday as Wall Street slumped to five-month lows on weak US data and disappointing tech news that spooked investors.

The London FTSE 100 index fell 1.09 to 4,891.6 points, the Frankfurt DAX dropped 2.04 percent to 4,312.25 points and the Paris CAC 40 slid 1.92 percent to 4,032.28.

The DJ Euro STOXX 50 index of leading eurozone shares tumbled 2.0 percent to 3,013.79 points.

The euro stood at US$1.2930.

Meanwhile, Wall Street extended recent falls as US consumer sentiment faded in April on higher gasoline prices, a weak labor market and sagging stock prices.

The University of Michigan's consumer sentiment index fell to 87.7 in mid-April from 92.6 in March, compared with expectations of a drop to about 91.3.

The mood was further dented by news that the spike in crude oil prices pushed import prices up 1.8 percent in March, exceeding the 1.3 percent forecast.

And the April Empire State Manufacturing index, meanwhile, fell to 3.1 in April from 20.2 in March, well below expectations of 17.3.

At London's close the Dow Jones Industrial Average was more than 65 points lower at 10,213.

The tech-heavy NASDAQ composite index was off more than 20 points on the back of a 6 percent slump by IBM, after the information-technology giant disappointed Wall Street with its first-quarter financial report.

In London, metals and mining stocks were the biggest blue-chip losers, mirroring declines in the US and Asia, owing to weak base metal prices and concerns about weaker demand, dealers said.

Anglo American gave back 0.73 percent at ?12.20, and Xstrata skidded 2.46 percent to ?9.90.

Steel company Corus plunged 4.27 percent to ?0.5050 in their wake.

Pharmaceutical stocks dominated a sparse blue-chip risers board as the market welcomed Eli Lilly's victory in its Zyprexa patent case in the US on Thursday.

A US District Court in Indianapolis found that Eli Lilly's patents on its lucrative schizophrenia drug Zyprexa were valid, thereby staving off generic competition for the drug.

AstraZeneca jumped 1.92 percent to ?22.84, GlaxoSmithKline added 0.96 percent at ?12.65 and Shire Pharmaceuticals shot up 2.40 percent to ?6.11.

In Frankfurt, Infineon and Siemens closed deep in the red, with Infineon dropping 3.45 percent to 7.00 euros, after first-quarter results from South Korean semiconductor peer Samsung Electronics came in below expectations.

Siemens closed 1.68 lower at 60.72 euros, after handsets peer Sony Ericsson reported first-quarter results shy of market expectations.

"The news from Sony Ericsson has dampened sentiment toward Siemens," one dealer said.

In Stockholm, Sony Ericsson descended 3.37 percent to 20.10 Swedish kronor after the mobile phone giant reported tumbling first-quarter profits.

Elsewhere in Europe, the Swiss SMI slipped 0.19 percent to 6,018.97 points. The Amsterdam AEX retreated 1.26 percent to 364.26 points, the Brussels BEL-20 fell 0.90 percent to 3,141.89, the Madrid IBEX-35 plunged 2.24 percent to 9,155.2 and the Milan SP/MIB lost 2.37 percent at 31,816.0.