"This uncertainty is not good for the markets," said Morgan Stanley Dean Witter's Chief economist in Paris, Byron Wien.

A recount in the make-or-break state of Florida was apparently narrowing the gap between Republican George W Bush and his Democrat contender Al Gore.

Bush was ahead by just 1,784 votes after the first count.London's FTSE 100 index finished 35.2 points lower at 6,442.2. Paris' CAC-40 index closed 64.88 points lower at 6,271.15. Frankfurt's DAX was down 49.14 points at 6,959.50. Across the 11-nation euro zone, the Euro Stoxx 50 index was down 0.8 per cent at 5,013.45. Many traders were glancing nervously at early trade on Wall Street, where the Dow Jones industrials had lost 0.9 percent to 10,813.30 and Nasdaq slipped 0.8 per cent to 3,207.21.

"The market is waiting for the reaction of the US markets to the US elections more than the results of the elections themselves," said Richelieu Finance chairman Gerard Augustin-Normand in Paris. On the Paris market, the technology sector fretted over earnings growth prospects after US blue-chip Cisco Systems' first-quarter results showed a 25 percent increase in stockpiles, dealers said. Alcatel A dropped three percent to 72.20 euros.

France Telecom fell 2.10 euros to finish at at 113.30."The longer this (election) affair draws out in the United States, the more it punishes the image of the United States," said Richelieu Finance broker Francois Escoffier. In the face of such uncertainty, technology shares suffered, he added. In London, the announcement that British interest rates had been left on hold at 6.0 per cent provided a brief relief. But the Wall Street nerves, compounded by higher-than-expected US producer price data, infected traders later in the day.

Big oil companies gained ground ahead of an OPEC meeting in Vienna on Sunday at which output levels were widely expected to be maintained. Shell recovered after its post-results sell-off last week, rising 6.5 pence to 568.5. BP Amoco rallied 14.5 pence to 589. In Frankfurt, technology stocks dragged down the market throughout the day, weighed down by the weak Nasdaq and uncertainty surrounding the US elections and worries over valuations, dealers said.

Siemens saw heavy losses for the second day after a series of broker downgrades, including from Goldman Sachs. At the close, Siemens was down 3.05% at 136.51 euros. Market heavyweight Deutsche Telekom fell back slightly, dropping 1.46 euros at 40.18 euros. Insurers were in favour, with Munich Re adding 18.10 euros at 391.0 and Allianz putting on 6.91 euros at 401.10 euros.

Elsewhere, Zurich's Swiss Market Index fell 70.80 points to 8,031.80, Madrid's Ibex-35 dropped 214.9 points to 10,273.5, and Amsterdam's AEX eased 6.45 points to 681.85. Brussels' Bel-20 edged up 5.15 points to 3,179.16, and Milan's Mib30 rose 68 points to 48,393. On the fixed-interest markets, meanwhile, Germany's benchmark 10-year bond finished with a yield of 5.23%, firming from Wednesday's close of 5.25%.

BASF share rises on rumours of sale of pharmaceuticals businessFrankfurt: Shares in the chemicals giant BASF were among the top gainers on the Frankfurt stock exchange on Friday, buoyed by rumours that the company plans to sell its pharmaceuticals arm, Knoll AG, traders said. Shares in the sprawling maker of industrial chemicals topped an intraday high of 44.20 euros in early electronic Xetra trade on Friday, a gain of 0.74 euros or 1.7 per cent from the closing price on Thursday. BASF was therefore outperforming the overall market, with the DAX blue chip index showing a gain of 0.73 per cent at 7,010.38 points.

Market rumours suggested that BASF was looking to sell its underperforming drug-making unit Knoll. A spokesman for the company declined to comment on the speculation.

News Corp loses $4 billion in value after loss
Sydney: Investors wiped another eight billion Australian dollars (4.2 billion US) from the value of News Corporation Ltd shares here Friday as the market continued to reel from the 439 million dollar loss posted for the September quarter by Rupert Murdoch's media giant.

Trading on the Australian Stock Exchange saw stocks in the company plunge by 10.7 per cent, or 2.14 dollars, to 17.84 dollars by close of trading. Since the September quarter result was announced Thursday, almost 13 billion dollars have been shaved from News Corp.'s paper value, a fall of more than 16 per cent. After sliding from around 26 dollars six weeks ago - amounting to a total drop in the conglomerate's market value approaching a third - the share's sudden collapse on Friday was so sharp it dragged the Australian stock market down almost one percent behind it.

It followed the stock's overnight drop on Wall Street, where it closed almost 12 per cent lower after the company announced a net loss of 439 million dollars for the three months to September 30, compared to a net profit of 251 million dollars for the previous corresponding period.

AFP