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Bourses smile at Kosovo deal
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June 11, 1999: 5:47 a.m. ET
Gains in Tokyo, Serb pullout cheer major markets despite caution ahead of U.S. data
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LONDON (CNNfn) - London blue chips climbed steadily early Friday, inspired by overnight resilience on Wall Street, strong gains in Tokyo and the start of a Serbian troop withdrawal in Kosovo. But traders remained cautious ahead of U.S. economic data due later Friday.
With traders squaring books before the weekend, the leading FTSE 100 gained 0.51 percent, or 32.5 points, to 6,435.9. Spearheading the gainers, mining concern Rio Tinto leapt nearly 5 percent a day after reports the company was in talks with Japanese rivals.
Oil giant BP Amoco (BPA) was up 0.6 percent, at 1,148 pence, after the European Commission announced it was poised to launch a probe in the firm's proposed $26 billion merger with Atlantic Richfield (ARC).
While most European markets shook off the overnight turmoil on Wall Street, the mood across the continent remained tentative amid lingering fears the U.S. Federal Reserve may soon jack up interest rates to cool off an overheating U.S. economy.
In Frankfurt, the electronically-traded Xetra Dax was up 38.48 points at 5,239.97, a rise of 0.74 percent, while Paris stocks listed on the CAC 40 eased marginally to 4,377.75. The SMI in Zurich added 28.8 points to stand at 7,055.2, a gain of 0.41 percent.
The start of the withdrawal of Serb troops from Kosovo and the 92 point gain on the Nikkei 225 in Tokyo both boosted confidence.
Most European bourses are likely to limit any gains as investors await U.S. producer price data later in the session. Any further signs of inflationary pressure would further support the case for a rise in U.S. interest rates.
European bourses and Wall Street suffered Thursday as investors focused again on a likely increase in the key borrowing rate in the U.S., rather than the first signs of an economic recovery in Japan.
The Dow Jones industrial average shed 69.02 points to 10,621.27, with the Nasdaq and the S&P 500 index fell over 1 percent.
German chemicals giant Bayer (FBAY), pared some early gains to trade up just over 1 percent, at 40.07 euros, after the chief financial officer told a newspaper the group would achieve record profits this year.
Germany's largest retailers shrugged off data which showed that retail sales fell by 4.4 percent in April compared to a year ago. The country's largest retailer, Metro (FMEO), was up 0.80 euros at 60.80, while Karstadt (FKAR) was faring even better, up 8.50 euros at 478.50. euros.
In Oslo, the board of Saga Petroleum postponed a planned news conference. Saga is expected to advise its shareholders to accept a twin takeover offer from state-controlled Norsk Hydro and Statoil, over a rival bid from France's Elf Aquitaine (PAQ).
Saga shares were off 3.50 Norwegian crowns, at 132.00 Friday; Elf shares climbed 1.7 percent, to 136.3 euros in Paris, as the company said it had no plans to raise its bid for Saga.
In the U.K., Cable & Wireless (CW.) advanced 0.4 percent, to 820 euros, amid a report that five bidders were vying for mobile phone group One2One, which is co-owned by C&W and MediaOne International.
--from staff and wire reports
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