European stock markets reverse recent rally as Buffett’s comments weigh (Reuters) (05-05-2008)

PARIS, May 5 (Reuters) - As investors took heed of investor Warren Buffett’s comment that the U.S. economy was in recession, European stocks dipped in early trade on Monday, while on continental Europe as UK markets were closed for a holiday.

Among shares leading declines, EADS retreated on reports in the German media that Airbus could run into problems selling some of its factory sites and could be forced to further delay some deliveries on its A380 superjumbo, while Deutsche Telekom fell 0.9 percent after Der Spiegel magazine and other media reported the company was looking at a possible purchase of U.S. wireless company Sprint Nextel.

At 0800 GMT, the FTSEurofirst 300 index of top European shares was down 0.2 percent at 1,358.52 points.

The technology sector came under pressure after Microsoft withdrew its bid for Yahoo on Saturday. The DJ Stoxx technology index was down 1.3 percent, while Yahoo shares traded in Frankfurt tumbled 17 percent.

Warren Buffett, the world's richest person, said on Sunday the U.S. economy is in recession, putting him at odds with a government report that showed weak growth.

SourceReuters