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Europe mixed, oil gushes
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August 15, 2000: 12:28 p.m. ET
Crude oil prices jump to 10-year high; London up on banks, techs
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LONDON (CNNfn) - Europe's leading markets were mixed at the close Tuesday, with oil stocks leading gains after crude oil prices climbed more than 4 percent in midday London trading amid expectation a report on U.S. inventories is expected to show supplies are running low. Technology stocks rose while steel manufacturers declined.
London's FTSE 100 index rose 0.9 percent to 6,475.5. Computer chip designer ARM Holdings (ARM) climbed 4.5 percent while Bookham Technology (BHM), a maker of equipment used in fiber-optic networks, rose 2.4 percent.
The CAC 40 in Paris added 0.4 percent to 6,636.61, with chip maker STMicroelectronics (PSTM) adding 5.5 percent, to lead the market higher, and data network operator Equant (FEQU) rising 1 percent.
Frankfurt's Xetra Dax index fell 24.24 points, or 0.33 percent, to 7,307.43, with retailer Metro (FMEO) down almost 4 percent amid concerns the company faces eviction from Europe's top 50 blue-chip stock index. Pan-European index compiler Stoxx Ltd. was due to review the composition of its Euro STOXX 50 index later Tuesday and analysts expected Metro to leave the index due to its shrinking market capitalization.
The SMI in Zurich slipped 0.3 percent to 8,250.1. 
The FTSE Eurotop 300 index, a basket of the region's biggest companies, fell 0.1 percent, with its steel sub-index down more than 5.2 percent.
Its biggest component, Corus (CS-), Europe's biggest steel company, fell 4.6 percent. Merrill Lynch downgraded its rating on the Anglo-Dutch steel maker to "reduce" from "neutral" and lowered its 2000 dividend forecast to 3 pence from 6p.
Germany rival Thyssen Krupp (FTKA) declined almost 1 percent. The German steel and engineering company said it no longer is interested in taking over utility E.ON's (FEOA) Kloeckner & Co steel and aluminum trading subsidiary.
U.S. markets were broadly lower Tuesday. The Dow Jones industrial average fell almost 1 percent while the Nasdaq composite was little changed at 3,849.64 in midday trade in New York.
In the currency market, the euro hovered in a narrow band at 91.21 U.S. cents.
Oil stocks spurt
In London, shares of BP Amoco (BPA) advanced 2.2 percent. Brent crude oil for September delivery rose $1.32 to $32.80 a barrel on the International Petroleum Exchange in London amid evidence of tight supplies and mounting concerns that a tropical storm brewing off the U.S. Gulf coast could disrupt refining and production.
Elsewhere, U.K. rival Shell Transport and Trading (SHEL) rose 1.4 percent and France's TotalFina Elf (PTFT) jumped 3.1 percent in Paris.
Banking stocks rose on speculation that the industry may consolidate further after Barclays (BARC) agreed to buy Woolwich (WHH) for $8.1 billion last week. Abbey National (ANL) added 2.4 percent, Alliance & Leicester (AL-) advanced 2.3 percent and Halifax (HFX) climbed 3.4 percent. Barclays rose 3.1 percent and index heavyweight HSBC Holdings (HSBA) rose 2.1 percent.
Standard Chartered (STAN) jumped 3.7 percent after the bank said it intended to use e-banking to market as many of its products in Hong Kong as possible and would consider cooperating with other companies in some areas of the business.
Media company Pearson (PSON) led the FTSE index higher, climbing 6.1 percent.
Outside of the FTSE 100, shares of Oxford BioMedica (OXB) rocketed 18.5 percent after the biotechnology firm said it has discovered 23 previously unknown genes that may play a role in cancer, heart conditions and inflammatory disease. 
"What we're looking at is biotechs," said Julian Buck of Barclays Stockbrokers in an interview with CNNfn. "There was the announcement this morning by Oxford on its gene discoveries - the sector is due for a lift."
Among other drug stocks, SmithKline Beecham (SB-) shed 2.3 percent while merger partner Glaxo Wellcome (GLXO) lost 1.9 percent.
"Old economy" stocks were among the leading gainers in Paris, taking 8 of the top 10 places. Auto parts maker Valeo (PFR) rose 3.8 percent, caterer Sodexho Alliance (PSW) rose 1.8 percent, food producer Danone (PBN) added 1.3 percent and electronic defense firm Thomson-CSF (PHO) rose 1 percent.
Topping the list of decliners in Paris as train maker Alstom [PAR: ], down 2.1 percent, cosmetics maker L'Oreal [PAR: ], off 1.6 percent, and supermarket chain Casino (PCO), down 1.2 percent. Automaker Peugeot (PUG) shed 1.4 percent.
German financial stocks were mixed. Commerzbank (FCBK) fell 1.1 percent, insurer Allianz (FALV) fell 0.9 percent and reinsurer Munich Re (FMUV) dropped almost 1 percent. HypoVereinsbank (FHVM) added 0.5 percent, Deutsche Bank (FDBK) rose 1.9 percent and Dresdner Bank (FDRB) climbed 1.5 percent.
Chip manufacturer Infineon Technologies (FIFX) jumped 3.3 percent while software company SAP (FSAP) fell 2.5 percent.
Household chemicals maker Henkel (FHKL) climbed 3.2 percent. Morgan Stanley Dean Witter raised its price target on Henkel to  77 from 70.
Deutsche Telekom (FDTE) declined 2.6 percent amid concerns that bidding in Germany's auction of third-generation mobile phone licenses could continue for some time with total bids after round 148 topping $39.2 billion. Rival bidder Amsterdam-based KPN Telecom dropped 3.5 percent.
Philips Electronics advanced 1.5 percent in Amsterdam after top U.S. cable television service provider AT&T (T: Research, Estimates) said it would buy 1 million advanced set-top cable boxes from Philips.
Also in Amsterdam, shares of United Pan-Europe Communications, Europe's largest cable operator, jumped 15.8 percent after reporting second-quarter results that topped analysts' expectations, even though its loss was five times larger than a year earlier as it spent heavily on new technology. 
-- from staff and wire reports
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