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Bourses hung up on rates
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June 24, 1999: 8:48 a.m. ET
European markets edge down in light trading despite cyclical, media activity
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LONDON (CNNfn) - European markets quickly lost early gains to edge down by midday Thursday. Investors remained tied to Wall Street's apron strings ahead of next week's decision on U.S. interest rates.
In London, the FTSE 100 traded down 10 points at 6,486.1 after an early 12-point gain despite a flurry of activity in the media sector. Frankfurt's Xetra Dax gave up a 40-point gain to fall to 5,372.19,a drop of 27 points, or 0.5 percent, from the open.
The CAC 40 in Paris lost the momentum built up last week as it dipped 5 points to 4,476.38 to reach a four-session low. The SMI in Zurich gave up an early 40-point gain to reach 7,071.4, a loss of 5 points from its open.
In very light trading, the FTSE Eurotop 300 of the largest pan-European shares reflected the narrow range of activity with a 3 point fall to 1,325.43. Cyclical and auto stocks offset declines in IT, aerospace and defense shares.
The euro also lost its early momentum after reaching $1.0370 before dipping to $1.0320 at midday.
In London, movement in the heavyweight oil sector was canceled out by a dip in the drug sector, but it was media stocks that prospered amid otherwise light corporate news.
Pearson (PSON), the owner of the Financial Times, jumped 6.9 percent to 1,335 pence after agreeing to sell its stake in investment bank Lazard Partners and paving the way for a restructuring of its own complex share structure.
Reports also suggest that Spanish telecom giant Telefonica is planning to take a 5 percent stake in Pearson. Telefonica shares were up nearly 1 percent in Madrid.
U.K. newspaper publisher Newquest (NWQ), which trades in the mid-cap FTSE 250, added 7.45 percent to 453 pence after accepting a $1.4 billion offer by U.S. media group Gannett (GCI).
The news helped lift the whole sector, with EMAP (EMA) rising 1.8 percent and Reed (REED) gaining 0.5 percent.
British Aerospace (BA) said Thursday it expects 1,400 voluntary job reductions from a planned restructuring of its manufacturing operations aimed at boosting productivity. The company will take a pre-tax exceptional charge of 250 million pounds ($394.4 million). BAe shares were up 0.2 percent.
It was left to telecom stocks to provide some lift as losers outgunned rising stocks. British Telecom (BT) added 2.1 percent at 1,135 pence and cable operator Telewest (TWT) gained 2.9 percent.
In Frankfurt, investors in Germany received an early boost from weaker-than-expected inflation data, with producer prices in May remaining flat despite a rise in energy prices. Consensus was for a rise in the overall index.
However, the early gains were quickly lost with only cyclical stocks providing some support. Telecom and utility group RWE (RWE) added 2.8 percent with a positive outlook at the annual meeting of its RWE Energie group.
Chemicals giant Degussa Huels (FDGS) gained 2.5 percent and utility provider Veba (FVBA) rose by 1.6 percent.
Software giant SAP (SAP) also recouped some recent losses, adding 0.9 percent.
Telecom stocks fell heavily, with Deutsche Telekom (FDTE) down almost 4 percent at 42.43 euros and Mannesmann (FMMW) losing 2 percent.
Deutsche's erstwhile partner, France Telecom (PFTE) led the losers in Paris with a 2.5 percent drop to 73.15 euros.
Vivendi (PEX) was among the small list of gainers, as the utility and telecoms firm added 2.68 percent. The company has been linked with a stake in Poland's TPSA. 
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