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Europe in record form
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March 6, 2000: 12:19 p.m. ET
Blue-chip indexes in Paris, Frankfurt post records; Vodafone lifts London
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LONDON (CNNfn) - Paris and Frankfurt closed at record peaks Monday as equity investors remained focused on a narrow range of technology and media stocks, while London was lifted by its telecom heavyweight Vodafone AirTouch.
The CAC 40 in Paris closed up 0.49 percent, at 6,545.98, to post its third straight record close as investors bought shares ahead of what are expected to be upbeat earnings announcements due Tuesday by some of the index's largest companies.
London's FTSE 100 ended up 81 points, or 1.24 percent, at 6,568.10, its highest level for seven weeks, though the rise largely reflected an 8 percent jump in Vodafone, the index's largest component.
In Frankfurt, the Xetra Dax ended up 0.26 percent at 7,975.78, having broken through 8,000 earlier in the session. Among smaller markets, the SMI in Zurich climbed 0.9 percent, while the Ibex 35 in Madrid was 0.3 percent higher, and the Mib-30 in Milan jumped 1.4 percent, helped by a surge of buying in banking stocks.
The pan-European FTSE Eurotop 300, a broader gauge of the region's largest stocks, also was in record territory, climbing 0.75 percent to 1,644.42.
The euro traded at $0.9602, having fallen as low as $0.9585, in New York late Friday. The dollar powered ahead against the pound, reaching a seven-month peak at $1.5713.
In the financial sector, mergers and acquisitions sparked interest in Europe's smaller markets, including Scandinavia, Spain and Italy.
Shares in Denmark's Unidanmark soared 8.3 percent after a $4.75 billion agreed offer from Finnish-Swedish bank MeritaNordbanken, a takeover that will create Scandinavia's largest financial-service company. MeritaNordBanken stock rose 4 percent.
In Milan, shares of Banca di Roma rocketed 28 percent, following the company's announcement of an Internet banking deal with Telecom Italia after the market close Friday. TI shares were slightly ahead.
In Madrid, Internet access provider Terra Networks rose 2.1 percent and BBVA, the country's second-biggest bank, added 0.26 percent after they announced plans to buy first-e, an Irish-based Internet bank. The pair plans to merge it with their own embryonic online bank to create a company known as unofirst.
Among the region's three biggest markets, Paris was led by a 9.8 percent surge in defense group Thomson-CSF (PHO), which reports 1999 earnings on Wednesday. Supermarket operator Casino (PCAS) rose 8.3 percent, ahead of its full-year earnings due Tuesday, and pay-TV broadcaster Canal Plus (PAN), which also reports Tuesday, was 8.4 percent higher.
 In the banking sector, Crédit Lyonnais (PCL) rose 6.3 percent and BNP (PBNP) was 4.1 percent higher.
Water-to-telecommunications conglomerate Vivendi (PEX) rose 4.85 percent, while France Telecom (PFTE) shares closed down 5.1 percent, after its 25 percent leap at the end of last week.
In London, mobile-phone company Vodafone AirTouch (VOD) buoyed the FTSE 100, amid expectations that its weighting, already the biggest on the index, will be increased further. The shares climbed 8.1 percent.
However, it was media-related stocks that enjoyed the firmest gains. Centrica (CAN), the gas distributor reinventing itself as a consumer-services provider, jumped 9.8 percent. Media group Pearson (PSON) rose 7.7 percent, after reporting a 15 percent jump in pretax profit, slightly ahead of consensus forecasts. Pearson said it had struck a preliminary agreement with America Online (AOL: Research, Estimates) on an Internet deal involving Pearson's planned online education network.
 FTSE 100 stocks were split evenly between gains and declines, with industrial gas group BOC (BOC) crimping the index's advance with a 12.5 percent slump amid concern that its proposed takeover by France's Air Liquide (PAI) and U.S.-based Air Products & Chemicals (APD: Research, Estimates) will be blocked by U.S. regulators. Air Liquide stock was almost 1 percent higher in Paris. Business services provider Hays (HAS) lost 13.5 percent, after disappointing the market with a 10 percent rise in six-month net earnings.
Heavyweight oil and gas producer BP Amoco (BP-A) ended narrowly down amid speculation that it may seek to sell all of the Alaskan assets of takeover target Atlantic Richfield to secure regulatory approval for the acquisition. Rival Shell Transport & Trading [LSE:SHEl] was down 1.7 percent.
Most bank stocks were lower ahead of the Bank of England's next decision on U.K. interest rates, due Thursday. HSBC Holdings (HSBA) was 2.5 percent lower and Lloyds TSB (LLOY), Britain's largest retail bank, lost 3.5 percent.
In Frankfurt, software publisher SAP (FSAP) surged 9.1 percent, helped by an earnings upgrade from Merrill Lynch. DaimlerChrysler (FDCX) and Deutsche Telekom (FDTE) fell rose 0.7 percent.
Banks were the weak link, with HypoVereinsbank (FHVM) giving up 3.8 percent and Commerzbank (FCMB) down 2.6 percent.
 In Zurich, Swisscom rose 2.75 percent, building on its 25 percent advance last week, as investors poured into a stock seen as undervalued compared with others in the sector. UBS climbed 1.6 percent higher, building on gains made Friday after it announced plans for more restructuring. Swissair parent SAirGroup was 0.6 percent higher, after matching expectations with a 24 percent fall in 1999 net profit. 
--from staff and wire reports
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