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London - European stock markets fell on Friday as China took fresh measures to cool its high inflation but computer chip makers got a boost after US giant Intel posted record earnings, analysts said.
London's FTSE 100 fell 0.75% to 5 978.72 points, Frankfurt's DAX 30 dropped 0.32% to 7 052.18 points and in Paris the CAC 40 shed 0.24% to 3 965.44 ponts.
The Stoxx 50 index of leading eurozone companies declined 0.37% to 2 905.23 points.
Intel's earnings were "helping to encourage buyer demand for tech stocks across Europe today whilst a move by China to raise the rate of bank reserve requirements by another 50 basis points triggered ... selling in mining stocks," said Joshua Raymond, an analyst for City Index traders.
"The selling in mining stocks was a bit of a knee-jerk reaction to the move by China with investors fearing moves by China to curb spiralling inflation could suppress metal demand," he added.
US computer chip giant Intel on Thursday posted a net profit of $11.7bn for 2010, up 167%, on revenue of $43.6bn.
"2010 was the best year in Intel's history," the California-based company's chief executive Paul Otellini said. "We believe that 2011 will be even better."
Its European peers were lifted by the results, with the share price of British chip maker ARM Holdings rising to the top of the FTSE 100 with a gain of 6.14% to 534.93 pence.
Elsewhere, markets reacted to China's announcement that its central bank planned to raise the amount of money that lenders are required to keep in reserve as the Asian nation seeks to rein in its high inflation.
The bank reserve requirement ratio would be raised by 50 basis points beginning on January 20, the People's Bank of China said in a statement.
Ever fearful of inflation's potential to spark social unrest, Beijing has been pulling on a variety of levers to rein in consumer prices and calm growing anxiety about soaring food costs and property values.
In December, the central bank hiked interest rates for the second time in less than three months. It raised the reserve requirement ratio six times in 2010, a move that obliges lenders to keep more money in reserve, effectively limiting the amount of funds they can lend and thereby curbing the liquidity blamed for helping fuel inflation.
