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Bourses open strongly
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December 7, 1998: 4:48 a.m. ET
Major merger, more rate cut hopes and firmer global markets boost stocks
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LONDON (CNNfn) - European stocks opened strongly Monday, buoyed by gains on Wall Street Friday and a strong start to the week in Asia.
Of course, there was another trans-Atlantic mega-merger to provide markets with an extra boost. The prospect of further European interest rate cuts also hung encouragingly in the air.
Germany's electronically-trade Xetra Dax index was 0.89 percent or 42.54 points higher at 4,845.3.
London's FTSE 100 opened 30.6 points higher or 0.55 percent at 5,612.5.
France's CAC 40 jumped 0.95 percent or 35.35 points to 3,773.94.
Switzerland's SMI added 0.85 percent or 58.3 points to 6,881 in early trade.
Hopes of a U.K. rate cut boosted London stocks. Last week's decision by the 11 Euroland nations to cut their interest rates to 3 percent has heaped pressure on the bank of England to cut rates Thursday.
"Twenty-five basis points is pretty much put to bed as granted by the markets but 50 basis points is a distinct possibility," said Rabobank head of equity strategy Roger Monson.
Multi-utility ScottishPower (SPW) lost 3.7 percent to 649 pence after it said it would pay $7.8 billion for Northwest electricity provider PacifiCorp (PPW). Analysts fear that PacifiCorp's recent weak financial performance marks a deeper malaise.
British Aerospace (BA.) climbed 3 percent to 507 pence after it was linked again with Germany's DaimlerChrysler Aerospace.
In Paris electrical group Legrand (PLR) was the biggest mover in early trade, climbing 4.18 percent to 1,469 francs.
Banks were also up strongly. Paribas (PPM) climbed 3 percent to 505 francs while BNP (PBNP) added 2.5 percent to 460.2 francs.
In Zurich UBS climbed 8.5 Swiss francs to 396 after it said its ready to sell off its global trade finance arm.
With a firmer dollar, auto stocks were doing well in Germany. DaimlerChrysler added 3.2 marks to 149.9 while BMW (FBMW) jumped 34.3 marks to 1,090.
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