|
Bourses enjoy late rally
|
 |
January 20, 1999: 5:56 p.m. ET
Greenspan comments fail to frighten European markets, close near daily highs
|
LONDON (CNNfn) - European markets headed higher in a late rally Wednesday, with Alan Greenspan's testimony to the U.S. Congress helping the major stock indexes finish near their highs for the session.
The New York market took a more sober view of the chairman of the Federal Reserve's comments shortly afterward, partly his view that the market might be overvalued. Before that could filter through to Europe though, most bourses had closed.
In London the FTSE 100 rose 1.3 percent, 78 points, to close at 6,105.6. Poor retail sales data and the minutes of the Bank of England's latest meeting gave rise to hopes of further falls in interest rates, but economists aren't expecting a move until February.
In Frankfurt the Xetra Dax jumped more than 3 percent, 159 points, to close at 5,197.15. The index was bolstered by strong gains at two heavyweights, Siemens and Deutsche Telekom.
In Paris the CAC 40 gained 1.8 percent, 74 points, to close at 4,190.01, and Zurich's SMI rose 93 points to 7,300.2.
London's session was dominated a recovery in several stocks which have been oversold in recent days. British Aerospace (BA.) rebounded 6 percent to 447 pence after sliding almost a fifth this week.
Chemicals group ICI (ICI) benefited from a broker's upgrade, and the stock rose more than 8 percent to 491 pence.
British Airways (BAY) hit turbulence in its acquisition of regional airline Cityflyer. Competition authorities want a closer look at the deal, and the sent BA's shares down 3 percent to 375 pence.
Among second-tier stocks British Steel (BS.), no longer a member of the blue-chip FTSE 1000, rocketed 15 percent ahead to 118 pence, after reportedly telling analysts its dividend was safe.
Trading in Frankfurt was dominated by the gains at Siemens (FSIE) and Deutsche Telekom (FDTE). Siemens reacted well to positive comments from a broker and shot up 12 percent to 61 euros. Deutsche Telekom gained 8 percent to 40.5 euros as the market continued its love affair with telecom stocks. Rival Mannesmann (FMMW) rose 7 percent to 127.5 euros.
Software giant SAP (FSAP3) slipped 3 percent to 305 euros as Dutch rival Baan announced it would post a big fourth-quarter loss. Baan shares fell almost 9 percent to 8.95 euros in Amsterdam.
In Paris France Telecom (PFTE) gained 9 percent in sympathy with its German neighbor, and equipment-manufacturer Alcatel (PCGE) recouped some of Tuesday heavy losses by rebounding 5 percent to 101.5 euros.
BNP (PBNP), up 6 percent to 81.5 euros, and CCF (PCCF), up 6 percent to 83 euros, led the financials higher.
Engineer ABB rose 3 percent to 1,565 francs in Zurich, after announcing the sale of its 50 percent stake in rail joint venture Adtranz to partner DaimlerBenz.
|
|
|
|
|
 |
|
