European shares trimmed most of their losses by mid-afternoon yesterday as Wall Street pushed higher in early trade despite some more bad economic numbers.

Technology shares put in the strongest showing, reflecting a one per cent gain in the tech-laden Nasdaq market in the United States, with healthcare and retailers also firmer.

German technology firm Siemens rose 2.9 per cent, while Finnish handset maker Nokia rose 0.5 per cent.

Deutsche Telekom put in the strongest gains among blue chips, with shares in the German telephone operator up 5.4 per cent.

By 1423 GMT, the FTSE Eurotop 300 index was down 0.87 per cent at 888.87 points, while the narrower DJ Euro Stoxx 50 index lost 0.75 per cent to 2,451.15 points, both up from earlier lows.

On Wall Street, the Dow Jones Industrial Average index was 0.3 per cent stronger while the tech-heavy Nasdaq Composite was 0.9 per cent higher.

Investors shrugged off the day's bad economic news. Orders for durable goods in the United States fell 5.9 per cent, far outstripping forecasts of a 1.8 per cent decline and a 0.4 per cent decline in August.

US consumer sentiment, as measured by the University of Michigan's index, fell to its lowest level in nine years in October due to stagnant jobs growth and stock market losses.

The world's third biggest food retailer, Royal Ahold, slumped 10.8 per cent after disappointing US sales figures and on disclosure concerns.

French building materials group Saint-Gobain, down 10.9 per cent, led the construction sector lower on fears over mounting asbestos claims.