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Europe enjoys late surge
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July 31, 2000: 12:42 p.m. ET
Sharp gains in late trading propel European stock indexes higher
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LONDON (CNNfn) - A sharp improvement for U.S. technology shares in early Wall Street trading provided a boost to European markets at the end of the continent's trading session Monday.
The rebound in New York was especially beneficial to Paris and Frankfurt, where both markets jumped almost 1 percent in the last hour of normal trading hours. Frankfurt trading continues later into the evening.
London stocks mainly missed out on the improvement, with investors preferring to focus on a poor earnings outlook for a leading Internet firm. That sent other Web firms into a spin. The FTSE 100 index scraped into the black in the last few minutes of trading, closing at 6,365.3, up 0.5 percent.
Frankfurt's Xetra Dax gained 61.68 points, or 0.87 percent, to end at 7,189.98, while in Paris, the CAC 40 closed the session 2 percent higher at 6,542.49. Switzerland's SMI finished Monday's session at 8,023.2, up just 25 points.
On Wall Street, the early gloom that followed a thrashing for technology shares Friday soon dissipated. The Dow Jones industrial average was 0.5 percent higher and the Nasdaq composite index up 1.7 percent around the time most European markets closed.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, eased 0.1 percent as its aerospace and defense sector fell 2.3 percent.
In the currency market, the euro traded at 92.35 U.S. cents, little changed from 92.30 cents in late trade in New York Friday.
London talk was dominated by Internet network operator Thus (THUS), which warned that tough competition would mean a heavy financial burden ahead. Thus shares, no longer part of the FTSE 100 index, crashed 30 percent, bringing rivals in the FTSE such as Energis (EGS) down 10 percent. Network operator Colt Telecom (CTM) fell 5 percent and computer consultants Misys (MSY) and Sema Group (SEM) also suffered a pounding.
Media firm Pearson (PSON) crumpled 9 percent after the market reacted with disdain to a rights issue accompanying a $2.5 billion takeover. 
Financial stocks proved a better bet in London Monday, with fund manager Amvescap (AVZ), a perpetual target of bid talk, up almost 8 percent. Royal Bank of Scotland (RBOS) rose 3 percent and mortgage lender Abbey National (ANL) advanced 2.5 percent. Supermarket chain Sainsbury (SBRY) bounded 7 percent higher on positive comment from a broker.
The main story in Paris was turbine maker Alstom (PALS). Its shares crashed 15 percent after the company issued a profit warning. Also running downhill was tire maker Michelin (PML), which fell a further 3 percent, continuing the hammering that followed last week's profit warning. 
Gains in Paris were spread across the sectors, with beauty products firm L'Oréal (POR) leading the late charge, and rising almost 6 percent. Consultant Cap Gemini (PCAP) added 5 percent and food processor Danone (PBN) rose a further 3 percent after strong rises last week following the release of good first-half figures.
In Frankfurt the market appeared uninterested in the auction for third-generation cellular licenses, which got under way with a slow start Monday. Retailers were ahead, with Wal-Mart (WMT: Research, Estimates), the world's largest retailer, casting its usual shadow over the German market. The Omaha-based firm has long been rumored to be interested in boosting its presence in Europe's largest economy. Metro (FMEO) rose 2 percent Monday on media reports it could be a target, and rival Karstadt Quelle (FKAR) jumped almost 7 percent.
BMW (FBMW) rose 2 percent after posting better than expected first-half earnings. 
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