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Bourses dip in flat trade
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March 1, 1999: 5:45 a.m. ET
Europe's major markets ease, despite some support from weakening euro
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LONDON (CNNfn) - Europe's major bourses languished in flat trade Monday as cautious investors took time out to digest a series of corporate earnings reports. London's blue chips retreated from last week's record highs ahead of a Bank Of England rate decision set for Wednesday.
A weaker euro provided some support for European bourses as the new European currency slipped below $1.10.
In London, shares in the FTSE 100 index of leading components slipped more than half a percentage point to 6,141.5. Several companies published earnings amid fresh economic data showing the British manufacturing sector contracted for an eleventh straight month in February.
Business services group Hays (HAS) reported pre-exceptional, pretax profits of $175 million, at the top end of expectations, and said it expected above average growth in its three core divisions in the second half despite tough economic conditions. Hays shares pared some early gains but was still up nearly 4 percent at 617 pence.
Mining group Billiton (BLT) also met forecasts with six-month profits of $165 million. But Billiton stock extended its losses Monday morning, shedding 1.48 percent to 133 pence.
Insurer Sun Life & Provincial (SLP) posted a 14 percent jump in earnings, prodding its shares up 1.5 percent to 497 pence.
In Frankfurt, the electronically-traded Xetra Dax was trading down 24.66 points, or 0.5 percent, at 4,879.30.
Truck maker MAN (FMAN) was 0.14 euros lower at 24.70, while steel maker Thyssen (FTHY) slid nearly 8 percent to 170, after going ex-dividend.
In Zurich, the SMI index inched up 0.06 percent to 7,068.2. In Paris the CAC 40 slipped 0.17 percent to 4,086.06, with many eyes on a stronger-than-expected 23 percent increase in earnings at banking giant BNP (PBNP). The shares were up 0.69 percent at 73.2 euros.
Earnings from carmaker Renault (PRNO) are also due out Monday, but are not expected until after the market closes. Shares of the company were unchanged at 42.50.
Shares in South African Breweries, the world's fourth-largest brewing group, debuted on the London Stock Exchange Monday. The group is angling for a position in the FTSE 100 index. In conditional trading, SAB stock was at 447 pence, after being placed at 428 pence.
In the telecom sector, Olivetti was poised Monday to press forth with its revamped bid for its much larger rival, Telecom Italia. Italy's stock market watchdog, Consob, on Saturday gave Olivetti clearance for the new offer, a move which applies further pressure on Telecom Italia to step up its defenses to ward off the unsolicited bid.
Analysts say Olivetti's bid is unlikely to succeed without outside support. Olivetti shares shot up 5 percent in Milan, while Telecom Italia stock was up nearly 2 percent.
-- from staff and wire reports
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