Bourses mostly higher at end

Bourses end mostly higher

June 17, 1999: 1:04 p.m. ET

Europe closes up after Greenspan issues soothing rate comments; London off a bit

LONDON (CNNfn) - Stocks finished almost uniformly higher across Europe Thursday after Federal Reserve Chairman Alan Greenspan reassured nervous traders with comments that signaled the central bank isn't gearing up for a draconian interest rate hike.
     In a choppy session dominated by Fed-related fears, London blue chips bucked the Continental upswing, paring early losses but still closing in the minus column.
     The benchmark FTSE 100 closed down 11.3 points, or 0.2 percent, at 6,493.6 after recovering lost ground amid comments by Greenspan that the Fed was likely to enact a moderate pre-emptive rate increase that will allow the central bank to avoid more stringent action later on.
     Europe's broader markets closed higher, supported by firmer U.S. stocks and the strength of the U.S. dollar.
     In Paris, the blue chip CAC 40 index set a closing record for the second day running, marching up 27.02 points, or 0.6 percent, to 4,508.77 on volume of 2.2 billion euros. The closing mark fell short of an intraday lifetime peak of 4,510.48, hit earlier in the session.
     In Frankfurt, the electronic Xetra Dax finished 32.84 points higher at 5,415.51, a rise of 0.6 percent, buoyed by sharp gains in Siemens (FSIE) after the high-tech firm disclosed a planned joint venture with Japan's Fujitsu. The venture will combine the firms' computer operations in Europe, creating a regional industry giant second only to Compaq (CPQ).
     Siemens, the second most heavily traded stock on the Dax, ended up 1.6 percent at 71.45 euros.
     The leading Frankfurt blue chip gainer, Deutsche Telekom (FDTE) gained 2.5 percent, to 44.49 euros after its chief executive said the company will make an acquisition by the end of the summer.
     Zurich's SMI ended 0.7 percent higher at 7,153.0. Banking group UBS added 12.0 Swiss francs to finish at 479.00 francs amid speculation that it could buy out French bank Paribas (PPM), taking some of the pressure off Banque Nationale de Paris (PBNP), which is embroiled in a hostile bidding battle for Paribas with rival Société Générale (PGLE).
     A French court rejected Thursday an appeal by SocGen and Paribas to block BNP's $37 billion hostile bid for both banks. SocGen shares lost 0.1 percent to 183.0 euros while BNP gained 1.8 percent to close at 86.00 euros.
     The third straight rise in the outlook for German business confidence helped relieve pressure on the euro, which had dipped as low as $1.0302 in Asian trading before a yen rally depressed the dollar, allowing the single currency to recover.
     In the retail sector, British mail order giant GUS (GUS) leapt 5.3 percent to end at 657 pence despite a 7 percent fall in pre-tax annual profits to 513.6 million pounds ($816.6 million), as investors weighed up the rosier outlook.
     Retail group Kingfisher (KGF), outbid by Wal-Mart in its plans to merge with Asda (ASD), lost another 1.5 percent to 726 pence.
     Alliance & Leicester (AL) was rewarded by investors following the breakdown of its merger talks with cross-border rival Bank of Ireland. Alliance shares rose 3.8 percent, to 911 pence amid speculation it may be a ripe takeover target. Lloyds (LLOY), considered a possible suitor for Alliance, ended up 2.1 percent.
     ScottishPower (SPW) regained early losses to end unchanged at 575 pence after U.S. regulators approved its $10.8 billion takeover of Oregon-based utility PacifiCorp.
     Speculation of a bid for publishing giant Reed (REED) lifted its stock 5.3 percent to 443 pence.
     Food and beverage company Cadbury Schweppes (CBRY) was hit for the second day by fall-out from the Coca-Cola-generated health scare, losing almost 3 percent at 394 pence.
     German stocks were sustained by the rise in the influential Ifo business confidence survey, which climbed to 90.4 in May from 89.7 in April.
     Mannesmann (FMW) continued its recent strong run after outlining its international expansion plans in the telecom sector, rising 2.45 euros to 148.70.
     Lufthansa continued its losing streak after Wednesday's profit warning, with the shares down 0.62 euros at 18.48.
     In Paris, aerospace stocks were heavily trade, with Thomson-CSF (PHO) shooting up 7.4 percent after the French government said it would let engineering group Alcatel (PCGE) increase its stake. However, Lagardere (PMMB) lost more than 4 percent to end at 35.01 euros.

-- from staff and wire reports