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Europe closes positive
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July 20, 2000: 3:50 a.m. ET
Paris and Frankfurt rise 1%; weak retailers keep London flat
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LONDON (CNNfn) - Europe's major markets enjoyed a positive session Thursday. The European Central Bank kept rates unchanged, and markets in France and Germany moved steadily higher. London just scraped into positive ground, held back by weakness among retail stocks.
In London, the FTSE 100 index shuffled to an almost imperceptible rise, up just 0.2 point at 6,456.6 as the tech sector stole the honors, but "old economy" shares underperformed. In Frankfurt, the Xetra Dax closed 1.5 percent higher, up 113.57 points to 7,480.14, led by a 13 percent surge for software supplier SAP [FSE:FSAP3], on relief at its second-quarter earnings.
In Paris, the CAC 40 added 1 percent to close at 6,557.89, and Zurich's SMI scrambled just 13 points higher to finish at 7,946.7. 
U.S. markets opened higher Thursday. By the European close, the Dow Jones industrial average was 1.2 percent higher and the Nasdaq composite had added almost 3 percent.
Investors on both sides of the Atlantic had been wary in advance of testimony U.S. Federal Reserve Chairman Alan Greenspan delivered to Congress Thursday, but his remarks provided a boost to equities.
In the currency market, the euro improved more than half a cent against the U.S. dollar at 92.75 U.S. cents after the ECB decided to leave short-term rates at 4.25 percent.
News that Wal-Mart (WMT: Research, Estimates) is planning an aggressive price-cutting campaign sent U.K. retailers spinning lower, although the index was held up by a strong showing by the technology sector.
Old economy stocks enjoyed a good day in Frankfurt, and Deutsche Telekom (FDTE) was hammered 7 percent lower on fears it would overpay in its pursuit of U.S. cellular firm VoiceStream Wireless.
The FTSE Eurotop 300 index, a basket of some of Europe's largest companies, rose 0.7 percent, with the computer services sub-index leading the index upward.
Techs surge, retailers weep in London
Chip designer ARM Holdings (ARM) rose more than 7 percent, continuing its good run since announcing strong earnings Wednesday.
A pack of computer services firms followed ARM in the winners' column: Misys (MSY) rose 6 percent while rivals CMG (CMG) and Logica (LOG) both added more than 5 percent.
The woes of the retail sector - British consumers have turned en masse to discount stores over the past year - worsened Thursday, after reports that Wal-Mart, owner of supermarket chain Asda, planned a painful price war.
Clothing and household goods retailer Marks & Spencer (MKS) fell almost 5 percent. Rival retailer Kingfisher (KGF) shed 4 percent.
In Frankfurt, SAP dominated the market after its earnings were released in mid-session.
Investors gave a happy send-off to Karstadt Quelle's (FKAR) chief executive, Walter Deuss. News that he would step down sent the retailer's shares spiraling almost 7 percent higher.
Travel and steel company Preussag (FPRS) jumped 4 percent on optimism it will complete a proposed takeover. The company said it has received or been promised acceptances by holders of 79 percent of the shares in its takeover target Thomson Travel (TRV).
Carmaker BMW (FBMW) rose almost 5 percent and was chased higher by a 2 percent gain at rival DaimlerChrysler (FDCX).
Shares of Dax heavyweight Deutsche Telekom (FDTE) were in the doghouse, shedding 7 percent following several reports the telecom powerhouse was in talks to buy U.S.-based VoiceStream Wireless (VSTR: Research, Estimates) in a deal valued at $53 billion, far higher than the $35 billion that earlier reports predicted. There no other significant casualties in Frankfurt's Dax index. 
Paris spread its gains across a wide variety of sectors. French media company Vivendi (PEX) rose 2 percent and pay-TV subsidiary Canal Plus (PAN) added 3 percent after shares in Vivendi Environnement (PVIE), its water supply and environmental services arm, began trading following their delayed initial public offering. Vivendi Environnement closed fractionally below its IPO price for institutional investors of  34.
Chipmaker STMicroelectronics (PSTM) rose 2.5 percent, basking in the strong earnings and bullish outlook it revealed Wednesday.
In the losers' column, France Telecom (PFTE) wallowed with rival Deutsche, although the French firm dipped just 2.5 percent. A U.S. press report said it, too, was contemplating a bid for VoiceStream. The company wouldn't comment.
In Amsterdam, Dutch financial services company ING fell 2.3 percent after inking its second big transatlantic purchase in two months, paying $7.7 billion in cash and assumed debt for the financial services and international units of U.S. insurer Aetna (AET: Research, Estimates).
Troubled Dutch software company Baan fell 1.4 percent after saying it expects to report an operating loss between $85 million and $95 million, or 32 to 36 cents per share, for the second quarter. The report could put more pressure on the recalcitrant shareholders who initially refused to tender their stakes to a takeover bid from Britain's Invensys (ISYS). 
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