August 29, 2002	Thursday	Jamadi-us-Saani 19,1423

LONDON, Aug 28: European stocks suffered their biggest one-day fall in nearly a month on Wednesday when technology leaders like Alcatel slumped on bleak outlooks from US peers, while weak German data dented hope for a timely economic recovery to revive profits.

Insurers were hit as the retreat in stocks trims the value of their equity investments, and the sector now looks to Thursday’s earnings reports from two of its leaders, Munich Re and Swiss Re for some cheer.

Oils fell as crude oil cut its recent hefty gains on talk of output hikes by the Opec producer cartel next month to help counter the impact on prices of a possible U.S. war on Iraq.

The stock market’s 20 per cent advance from its five-year low of late July has ground to a halt and big hurdles loom.

“I think we are stuck in a trading range,” said Robert Sellar, a fund manager at Aberdeen Asset Management.

“We have the September 11 anniversary not far off and consequently the market will get jittery, with oil prices telling you that. Then we have got the third quarter earnings pre-releases in the middle of September.”

Worry that more earnings warnings lay ahead were stoked by Canadian telecom equipment maker Nortel Networks which cut its third-quarter revenue target and slashed jobs, sending shares of French rival Alcatel down 8.8 per cent.

Techs were also hit by news from top U.S. personal computer and printer maker Hewlett-Packard which cut its guidance for the current quarter. By 1532 GMT, with only Frankfurt officially trading, the FTSE Eurotop 300 index was off 3.6 per cent at 964.15 points.—Reuters