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London, Paris jump on data
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July 15, 1999: 1:20 p.m. ET
U.K., French stocks make solid gains on benign U.S. inflation figures
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LONDON (CNNfn) - London and Paris led the way in Europe Thursday as both posted solid gains on the back of tame U.S. consumer price data. German and Swiss blue chips shed most of their earlier advances but still finished in the black.
London's FTSE 100 closed almost 102 points higher at 6,575, a rise of 1.6 percent, amid stellar performances by some index heavyweights. U.K. investors also were buoyed by a new survey hinting that consumer confidence was near record levels in the second quarter.
Paris, which reopened after Wednesday's Bastille Day holiday, saw investors play catch-up, although the U.S. inflation data released early afternoon in France provided the real boost. The CAC 40 closed 1.55 percent higher at 4,665.67, a rise of just over 71 points.
Investors in Frankfurt found less to celebrate, despite an initial 1 percent surge after the release of the U.S numbers. The Xetra Dax finished just 8.37 points higher at 5,619.26, as the market reacted to a slide on Wall Street just before the close.
Swiss investors followed a similar pattern to their German neighbors, as the SMI posted a modest gain of just 18.6 points to end at 7,112.5, a rise of 0.26 percent.
German and Swiss blue chips tracked the Dow Jones industrial average, which shed most of its early gains to trade just inside the plus column as the European session came to a close.
The release of the U.S. consumer price index for June, which was flat for the second month running, combined with an apparent tightening stance by the European Central Bank toward interest rates helped provide support for the euro.
The ECB left rates unchanged as expected, but the struggling currency hit a session high of $1.0252 in European trading, before settling back around the $1.0230 mark.
London was bolstered by some strong performances by its some of its heavyweight stocks.
The banking sector led the way, as investors built up their portfolio ahead of the interim reporting season. Lloyds TSB (LLOY) led the way as it soared almost 6 percent. NatWest Bank (NWB) jumped almost 4 percent, while HSBC (HSBA) and Barclays (BARC) both surged 3.4 percent.
The big oil producer BP Amoco (BPA) also boosted the index as it rose over 2.1 percent to hit a record high of 1,288 pence. Investors reacted positively to plans to dispose of $10 billion in assets and raise cost-cutting targets.
Rival Shell (SHEL) benefited from the improving view toward the sector and jumped almost 3 percent.
Telecoms also were in vogue, with Cable & Wireless (CW.) again the center of attention after France Telecom (PFTE) and U.K. media group NTL confirmed plans to launch a bid for the residential cable assets of Cable & Wireless Communications (CWZ). The latter's shares closed almost 3.4 percent higher, while France Telecom closed up 0.62 percent. C&W shares ended the session up 2.2 percent.
France Telecom was set to unveil details of its plans to take a minority stake in NTL as part of the CWC deal after the markets had closed.
Other telecom stocks also surged, with British Telecommunications (BT.A) up 2.1 percent, Vodafone AirTouch (VOD) up 2.5 percent and Colt Telecom (CTM) jumping almost 5 percent.
Media group Reuters (RTR) put in one of the best performances on the FTSE as its shares soared over 6.7 percent after the successful flotation of a stake in its Tibco software unit.
Brewer and pub operator Whitbread (WTB) saw its shares jump almost 3.9 percent after it canceled its recommended bid for the 3,500-pub portfolio of beverage giant Allied Domecq (ALLD) just before the market closed. The latter's stock was up 1.65 percent as it left the way for privately-held Punch Taverns to take the prize.
Retailer Marks & Spencer (MKS) was one of the biggest losers after announcing a 9.6 percent fall in sales in the 15 weeks from March 31. The shares closed down 2.7 percent.
In Frankfurt, pharmaceutical group Hoechst (FHOE) closed just under 2 percent higher ahead of a vote by shareholders on its proposed tie-up with France's Rhone-Poulenc (PHRP), which soared over 4.1 percent in Paris.
Hoechst rival Bayer (FBAY) bore the brunt of investors switching into Hoechst stock, as its shares slumped 3.9 percent.
Analysts were at a loss to explain the 5.5 percent jump in the shares of Preussag (FPRS).
In Paris, Franco-Belgian oil producer TotalFina (PFP) jumped over 4 percent after the company said it had held informal talks with European regulators Wednesday about its hostile bid for Elf Aquitaine (PAQ). Elf's shares closed 2.5 percent higher.
The drawn-out, three-way hostile French banking battle appeared to be closer to a conclusion after the bourse's regulator said BNP's (PBNP) offer for both Société Générale (PGLE) and Paribas (PPM) would run for at least 15 days following publication of the detailed bid timetable by the stock exchange.
BNP's shares closed almost 4.7 percent higher, while would-be merger partners Soc Gen and Paribas were up 2.9 percent and 1.5 percent, respectively.
In Zurich, drugs giant Novartis slipped 0.5 percent to 2,231 Swiss francs after it announced a modest rise in first half sales. 
-- from staff and wire reports
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