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Europe closes mixed
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June 19, 2000: 8:14 a.m. ET
Frankfurt rises on index changes; London hit by banks, Vodafone
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LONDON (CNNfn) - European stock markets recorded a mixed performance by the close of trade on Monday, as weak financial stocks left the blue-chip index in London narrowly down while Frankfurt and Paris posted modest gains.
Bourses traded within a narrow range throughout the session, with bank stocks slipping in tandem with falls among their U.S. peers Friday; sparked by renewed concern over interest rates.
Frankfurt's Xetra Dax rose 67.40 points, or 0.95 percent, to 7,198.80.
A cut in Deutsche Telekom's index weighting saw its shares slide back while increased weightings gave a boost to chemical and transport stocks. Commerzbank stock was lifted by confirmation that it was in talks with larger rival Dresdner Bank, which saw its own shares lose ground.
In Paris, the CAC 40 blue chip index ended 0.76 percent ahead at 6,505.16, with gains among media stocks countering falls in financial shares.
London's benchmark FTSE 100 index ended down 0.55 percent at 6,490.2 after losing ground in afternoon trading. Heavyweight telecom and banking components lost ground, with Vodafone AirTouch losing more than 4 percent.
Falling bank stocks also contributed to a 0.65 percent fall to 7,794.6 on the SMI in Zurich, while the AEX in Amsterdam ended down 0.77 percent at 677.19.
The Dow Jones industrial average and the Nasdaq composite were both flat at the close of European trading, having shed opening gains.
Tim Harris, equity strategist at JP Morgan, said in a note to clients that he favored a "smorgasbord", or mix of stocks. "Our main recommendations are overweight oil, IT hardware, financials and food producers, and underweight most cyclicals and media," he said.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, closed 0.47 percent lower at 1,609.38, with its telecom sub-index down 2 percent and banks down 1 percent. Oil and gas shares were the best performers, although oil prices slipped 2 percent.
In the currency market, the euro dipped Monday to $0.9610 from $0.9645 in late trading in New York Friday, with traders citing the recent advance of the yen against both currencies as the main driver.
In Frankfurt, Xetra Dax components re-weighted
In Frankfurt, Commerzbank (FCBK) shares were 2.5 percent ahead after confirming that it had held talks with Dresdner Bank (FDRB) about possible cooperation with Germany's third-ranked bank. Dresdner shares were down 2.75 percent while insurer Allianz (FALV), which has a 22 percent stake in Dresdner, gained 2.4 percent..
 The first day of trading in the re-weighted Xetra Dax components drove chemicals company BASF (FBAS) to the top of the index with a 5.6 percent advance as managers of index-tracking funds bought more shares to reflect its heavier weighting. Forklift-truck maker Linde (FLIN) rose 4.2 percent while Lufthansa (FLHA) gained 4.6 percent.
Deutsche Telekom (FDTE) fell 3.2 percent as its weighting was capped to 15 percent. The firm said Sunday that the latest chunk of Telekom stock to come to the market, in an offering of as many as 230 million shares, would be priced at 66.50 euros, below Friday's closing price of 68.06 euros.
Saatchi & Saatchi jumps outside London's FTSE
In London, the FTSE 100 was held back by sharp falls in telecom and financial components.
Mobile-phone operator Vodafone AirTouch (VOD) ended 4.3 percent lower while Colt Telecom (CTM) was the market's worst performer as it finished with a 6.1 percent decline.
Amid a weak financial sector, Halifax (HFX), Britain's biggest mortgage lender, lost 2.3 percent and Barclays (BARC) closed 2.4 percent lower.
Heavyweight oil and gas shares helped to limit the FTSE 100's fall, with BP Amoco (BPA) up 1 percent.
Electronics and engineering firm Invensys (ISYS) topped the list of FTSE 100 gainers with a 5.6 percent advance, rebounding from a 16-month low set Friday.
Electronics retailer Dixons (DXNS) was almost 5 percent ahead while hotels and pubs firm Bass (BASS) gained 4.3 percent.
 Outside the FTSE 100, advertising firm Saatchi & Saatchi (SSI) jumped 22 percent after announcing that it was in merger talks, with an undisclosed company. Two U.S. firms were seen as the most likely suitors.
Shares in handheld-computer maker Psion (PON) surged 16 percent after a media report that it and its partners, Nokia, Motorola (MOT: Research, Estimates) and Ericsson, would stage an initial public offering of shares in their jointly held mobile-telecommunications venture, Symbian, early next year for up to 5 billion pounds ($7.6 billion). Nokia shares were 1 percent lower in Helsinki.
Media lifts Paris ahead
In Paris, media-to-missiles conglomerate Lagardère (PMMB) led the market with a 5 percent advance while its TV subsidiary TF1 added 3.2 percent.
Chipmaker STMicroelectronics added 3.4 percent and Crédit Lyonnais (PCL) bucked the trend among financial stocks by posting an 3.1 percent advance.
Insurer Axa (PCS) ended 2 percent lower while Société Générale lost 3.5 percent. Vivendi (PEX) lost 2.6 percent as the media-and-utilities firm's board met to discuss its planned $47 billion acquisition of Canadian media firm Seagram.
In Helsinki, shares in Nordic Baltic Holding, parent of MeritaNordbanken, closed down 1.7 percent after it raised its offer for Norway's Christiania Bank to $2.8 billion.
In Amsterdam, ING Group shed 1.9 percent after the financial-services firm's latest attempt to buy a unit of Aetna (AET: Research, Estimates) was rebuffed by the No.1 U.S. health insurer.
In Zurich, UBS and CS Group were both more than 1 percent lower. 
--from staff and wire reports
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