In London, the FTSE 100 index of leading shares fell by 32.6 points in early trading to 6,355.2 points. In Frankfurt, the DAX index opened 0.04 percent lower at 7,110.47 points and in Paris, the CAC 40 index was showing a loss of 0.29 percent, or 18.98 points, mid-morning at 6,500.06 points.

Trading volumes were light and dealers said that the markets had fallen in the wake of profit-taking. So they dismissed an overnight upturn on Wall Street to follow instead the leading Asian markets lower. US stocks were led higher by electronics and telecommunications companies, to give a two-percent increase on the Nasdaq composite index and a 0.92-percent rise on the Dow Jones Industrial Average. But the Asian markets, like Europe, failed to buy into the enthusiasm.

Hong Kong share prices closed 2.9 per cent lower on profit-taking after recent gains, while Tokyo share prices fell back 1.1 per cent. The London market digested a number of announcements from blue-chip companies. Shares in BOC gas group rose by three pence to 990 pence after the company reported pre-exceptional pre-tax profit of 117.6 million pounds (176.4 million dollars, 185.8 million euros) in the third quarter to give nine-month profits of 341 million pounds.

BP oil stock rose by five pence to 612 pence ahead of second-quarter results due at 1030 GMT. Psion computer stock rose by 10 pence to 675 pence on half-time results showing a rise in turnover to 94.3 million pounds from 64.2 million. Telewest media stock rose by three pence to 173 pence on continued press speculation of a takeover bid for the group. Colt Telecom stock fell by 54 pence to 2,102 pence on profit-taking ahead of results due later in the session. Some high-technology issues rose in line with the gains seen on the Nasdaq market.