Stock stumbles led by Dell, HP and Nortel

In London the FTSE dropped 0.8 per cent and the Techmark fell 1.5 per cent in early trading. One of the hardest hit stocks was telecom equipment maker Marconi. A nine per cent fall this morning saw its stock reach its lowest level since September 1999.

Other UK casualties included BT, down 4.2 per cent, Bookham, down 4.6 per cent and Vodafone, down two per cent, a drop that accounted for a one-third decline in total FTSE valuation.

In Paris the CAC 40 dropped one per cent, with Marconi rival Alcatel down eight per cent. Orange ended its debut week as a listed company with a three per cent drop after Moody downgrading France Telecom's long-term debt rating yesterday.

In Frankfurt the DAX also suffered, dropping 1.2 per cent.