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Bourses inch ahead
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June 10, 1999: 5:30 a.m. ET
European stocks rise in quiet markets as UK awaits rate decision
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LONDON (CNNfn) - European stock markets again decoupled themselves from Wall Street's slide to shake off early losses and move broadly ahead in morning trading Thursday.
London's FTSE 100 index rose 14.9 points to 6,467.9, while France's CAC 40 added 15.68 or 0.37 percent to reach 4,438.97.
Frankfurt's electronically-traded Xetra Dax made a slightly stronger open, gaining 0.69 percent to reach 5,287.02.
The SMI in Zurich bucked the upward trend as its heavy weighting toward financial stocks saw the index pulled back 0.2 percent to 7,176.3
Europe's fledgling currency continued its mini-revival, rising back above $1.05.
The good news coming out of Japan had little impact. The economy there registered its first positive growth for 18 months. Tokyo blue chips soared almost 500 points in anticipation of good GDP figures.
European sentiment was hampered by the continuing worries about the likely rise in U.S. interest rates. The Dow Jones Industrial average closed over 75 points lower at 10,690.29, though the Nasdaq rebounded from Tuesday' slide to 2,519.35.
The weak demand in European markets was reflected in the FTSE Eurotop 300 of the largest pan-European companies which nosed ahead less than 2 points to reach 1,316.24.
The auto sector was among the main gainers, adding 0.9 percent, while food stocks shed 0.86 percent.
Trading in London was modest ahead of the Bank of England's decision on interest rates due later Thursday. Markets are expecting rates to remain unchanged, although some economists say a small cut is possible.
Corporate news weighed on some smaller cap stocks, with holiday group First Choice (FCD) crashing 9 percent to 189 pence after Airtours (AIR) allowed its hostile bid for the firm to lapse, causing its own shares to dip 2.6 percent to 506 pence. Competition watchdogs will investigate the deal, leading to a minimum of a four month gap before any takeover can be concluded.
General Electric Co. (GEC) jumped 2.54 percent to 629 pence after posting a 70 percent jump in annual pretax profit to 1.5 billion pounds ($2.4 billion).
Satellite operator BSkyB (BSY) continued to move up on speculation of a deal with France's Canal Plus (PCAN), adding 2.5 percent to reach 614 pence.
Whitbread (WTB) stock was unmoved in London after providing more information on its $4 billion takeover of a pubs estate from Allied Domecq (ALLD).
In Frankfurt, Commerzbank (FCBK) continued to advance amid expectations that it may spin off its online banking operations, adding almost 1 percent at 29.55 euros.
Stocks in focus included volatile German software giant SAP (FSAP3), which was off almost 2 percent on reports it had lost a major U.S. client.
In Paris, the three banks involved in a hostile bidding war came under scrutiny after the French government said it would not sanction a non-French white knight for Société Générale (PGLE). Its shares added 1.14 percent at 185.8 euros. Merger partner Paribas (PPM) was unchanged and BNP (PBNP), which is targeting both banks, shed 0.2 percent at 82.80 euros.
In Switzerland, shares in holiday firm Kuoni were unchanged despite the advance of its merger plan with First Choice after Airtours' partial withdrawal.
-- from staff and wire reports
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