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US data invigorate Europe
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June 2, 2000: 5:06 a.m. ET
Techs, media and telecoms rally as report cools U.S. inflation fears; euro rises
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LONDON (CNNfn) - Europe's major bourses were pushed higher Friday after a market-friendly U.S. economic report suggested the world's largest economy may be cooling from its heady pace and ease pressure on Federal Reserve officials to raise interest rates much further.
Technology, media and telecommunications stocks were the top gainers. London's benchmark FTSE 100 index soared 155.9 points, or 2.4 percent, to 6,617.8, spurred higher in part by 18-percent gain for computer services firm CMG (CMG). The blue-chip index gained 6.6 percent for the week.
The CAC-40 index in Paris closed up 73.81 points, or 1.1 percent, to 6,673.52, its second straight record close though down from its intra-session highs. For the week, the French index rose 8.9 percent. 
Frankfurt's electronically traded Xetra Dax rose 166.19 points, or 2.3 percent, to 7,438.95. Friday's was the German exchange's first extended trading session, which ended at 8 p.m. local time.
The SMI in Zurich rose 1.4 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 2.2 percent at 1,650.67. Its information technology sub-index soared 9.5 percent and the media sub-index jumped 5.7 percent.
Such "new economy" companies are often seen as more at risk from higher interest rates.
European investors poured into equities after the U.S. government said the economy there added 231,000 new jobs in May, far fewer than the 375,000 expected, while the jobless rate rose to 4.1 percent. Federal Reserve policy makers have raised interest rates six times recently to keep inflation at bay, and the slowdown in job growth may suggest fewer rate hikes are needed.
The report also lifted the euro to six-week highs against the dollar. The European currency strengthened to $0.9426 from $0.9331 in late trading in New York on Thursday. Higher interest rates in a country tend to support the domestic currency.
As trading in London and Paris ended, the Nasdaq composite index was up another 5.2 percent and the Dow Jones industrial average rose 1.4 percent.
Techs boom in London
The top 10 percentage gainers in the FTSE index all were in the technology, media and telecom sectors. Baltimore Technology (BLM) soared 13.6 percent, news and data firm Reuters Group (RTR) leapt 16.1 percent and microchip designer ARM Holdings (ARM) rose 12.3 percent. 
Hand-held device maker Psion (PSON) rose 13.3 percent, Colt Telecom (CTM) jumped 10.6 percent and music label EMI Group (EMI) rose 10.3 percent.
Leading the losers in London, Pensinsular & Oriental Steam Navigation (PO-) plunged 11.2 percent after the British shipping company said the profitability of its cruise holiday business is likely to suffer this year from increased capacity in the industry and a tougher U.S. market.
Also lower were liquor and food vendors Allied Domecq (ALLD), off 5.3 percent, and Cadbury Schweppes (CBRY) down 5.6 percent. Asset management firm Schroders (SDR) fell 5.2 percent and insurer Royal Sun & Alliance (RSA) slipped 4 percent after Dresdner Kleinwort Benson cut its investment rating on the insurer to "reduce."
Outside the FTSE 100, Internet travel and ticket booking agency lastminute.com (LMC) soared 17.9 percent after signing a content agreement with travel services provider Expedia.co.uk.
And after a slow start to the trading session, TMT shares in Paris rallied. Computer consultant Cap Gemini (PCAP) rose 3 percent and networking gear maker Alcatel (PCGE), which is expected to announce its growth strategy next Tuesday, rose 6.6 percent. Europe's biggest pay-TV operator, Canal Plus (PAN), rose 4.6 percent.
Leading the CAC 40 losers was automaker Renault (PRNO), off 2.6 percent, despite saying domestic auto sales rose nearly 34 percent in May as the French auto market saw its best May in 10 years. Donaldson Lufkin & Jenrette cut its rating on the stock to underperform from market perform.
SAP (FSAP), Europe's largest software firm, rocketed 6 percent in Frankfurt as it disclosed a restructuring program after a loss in the latest fiscal quarter and sharp drop in its shares. 
Xetra Dax index heavyweight Deutsche Telekom (FDTE) shot up 5.9 percent and electronics components maker Epcos (FEPC) jumped 4.5 percent. Epcos parent Siemens (FSIE) rose 3.2 percent.
German chemical company Henkel (FHKL) was Frankfurt's biggest decliner, falling more than 2.2 percent. Steel and engineering firm Thyssen Krupp (FTKA) fell 3.5 percent.
Germany's auto sector also was weak. Truck maker MAN (FMAN) dropped 1.7 percent, Volkswagen (FVOW) also fell 1.7 percent while DaimlerChrysler (FDCX) dropped 1 percent.
-- from staff and wire reports 
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