|
Bourses seek direction
|
 |
January 12, 1999: 5:35 a.m. ET
Dollar revives, but European investors remain inactive
|
LONDON (CNNfn) - European bourses searched for a lead in directionless trading early Tuesday. The major indexes traded in a narrow range, appearing unlikely to make a strong move either way.
A flat performance in Tokyo overnight and a mildly lower close in New York Monday gave European markets little impetus. The dollar staged a recovery against the yen, climbing off its lows to touch 112 yen, but there was little sign that European investors were prepared to take hefty bets on the dollar earners such as exporters.
In London the FTSE 100 gained 38 points to 6,123.4, while Frankfurt's Xetra Dax eased just 8 points to 5,258.54.
In Paris the CAC 40 dipped 16 points to 4,185.75, and Zurich's SMI slipped 7 points to 7,457.9.
Retailer Kingfisher (KGF) led the way in London after the company's sales update for the Christmas period proved U.K. consumers had dipped their hands in their pockets. Kingfisher stock rose 3 percent to 665 pence.
British American Tobacco (BATS) continued to gain following Monday's big deal.
In Paris investors continued to ponder LVMH's intentions toward fellow luxury goods group Gucci. LVMH (PMC) stock slipped 2 percent to 207.1 euros after the owner of Moet et Chandon champagne and Louis Vuitton luggage announced it had grabbed a further 9.5 percent stake in Gucci, from Italian fashion house Prada.
Computer services group Cap Gemini (PCAP) was suspended limit down with a10 percent loss at 140.8 euros after a Morgan Stanley analyst in London lowered his recommendation on the stock to "neutral" from "outperform." Cap Gemini's stock has been on a downtrend since peaking at 162.90 euros on January 6.
Thin volumes characterized early trading in Frankfurt. Auto stocks gave some ground, with Volkswagen (FVOW) easing 4 percent, and DaimlerChrysler inching lower. Chemical stocks BASF (FBAS) and Bayer (FBAY) moved modestly higher, but the banking sector eased into negative territory.
In Milan Olivetti denied a press report that it was planning a takeover of Telecom Italia. Olivetti shares eased a fraction to 3.17 euros, and Telecom Italia stock was flat at 7.87 euros.
|
|
|
|
|
 |
|
