FTSE flat after BAE loses Saudi contract Europe's main share markets were treading water on Friday, with industrial stocks dragging on indices across the region. There was little to provide fresh momentum as the warm market reaction to the Federal Reserve's "sugarcoated taper," or reduction of its monthly stimulus programme, struggled to extend into a second trading day. Frankfurt's Xetra Dax 30 made the best showing in the region, up 0.3 per cent at 9,358.44. Defensive stocks were higher, with Deutsche Post up 0.7 per cent at €26.2 and Deutsche Telekom 0.8 per cent higher at €12.47. In Paris, the CAC 40 was down 0.2 per cent at 4,169.76, with telecoms stocks under pressure. Vivendi was down 1.4 per cent at €18.69, while Orange fell 0.9 per cent to €8.9. Overall, the FTSE Eurofirst 300 is flat at 1,282.56, BAE Systems in London fell 3.5 per cent to 426.1p after its contract to supply 60 fighter jets to the United Arab Emirates collapsed. Engine maker Rolls-Royce was also down, losing 0.6 per cent to £12.34. The FTSE 100, which was flat at 6,589.03, was held back by losses among utility stocks as well as its industrial companies. France's Dassault Aviation, seen as well placed to pick up an alternative UAE contract, was up 3 per cent at €918.90. Carnival was the best single stock on the London index, up 2.1 per cent at £23.61 after a series of broker upgrades for the stock following its trading update on Thursday. Among them, analysts at UBS lifted their rating on shares in the cruise operator to "buy" from "neutral."