LONDON (CNNfn) - Europe's major markets closed higher Wednesday with financial stocks gaining in London on speculation of further consolidation, while banks in Frankfurt, Paris and Zurich climbed as tame U.S. consumer price data soothed worries about an interest rate hikes.
London's benchmark FTSE 100 index added 0.9 percent to 6,532.0, with mortgage lender Abbey National, Alliance & Leicester and Halifax among the top gainers.
The blue-chip CAC 40 in Paris climbed 0.7 percent to 6,684.93, led by Societe Generale, BNP Paribas and insurer Axa.
The Xetra Dax in Frankfurt gained 7.84 points, or 0.11 percent to 7,315.27, with Deutsche Bank and insurer Munich Re leading gains. Financial heavyweights CS Group and UBS led gains helped Zurich's SMI climb 0.8 percent to 8,318.4.
The broader FTSE Eurotop 300 index, which is made up of a basket of Europe's largest companies, rose 0.5 percent to 1,658.95, with its banking sector up more than 1 percent.
U.S. markets were mixed in midday trade. The Dow Jones industrial average fell 0.5 percent while the Nasdaq composite rose 0.6 percent to 3,876.63.
In the currency market, the euro fell to 90.81 U.S. cents from 91.29 in late New York trade late Tuesday.
In London, banking stocks rose on speculation that the industry may consolidate further after Barclays (BARC) agreed to buy mortgage banker Woolwich (WWH) for $8.1 billion last week. Abbey National (ANL) added 0.4 percent, Alliance & Leicester (AL-) advanced 3.4 percent, Halifax (HFX) climbed 1.3 percent, and Royal Bank of Scotland (RBOS) rose 1.9 percent. Barclays rose 3.9 percent and Woolwich climbed 2.6 percent.
Insurers moved up along with banks. Royal & Sun Alliance (RSA) rose 4.8 percent and insurer Legal & General (LGEN) climbed 3.5 percent. France's Axa (FCS) rose 1.8 percent, rival AGF (FAGF) climbed 1.1 percent, Germany's Munich Re gained 1.1 percent, and rival Allianz (FALV) gained 0.7 percent.
In Paris, BNP Paribas (PBNP) climbed 1.9 percent and Societe Generale (PGLE) rose 1.1 percent, while Deutsche Bank (FDBK) topped the leader board in Frankfurt, rising 4.1 percent.
Back in London, Anglo-Dutch consumer products maker Reckitt Benckiser (RB-) rallied 6.6 percent after posting a 9 percent increase in second-quarter profit and saying cost savings from last year's merger are ahead of plan. The company, which makes Lysol disinfectant and Finish dishwashing detergent, was formed after Britain's Reckitt & Colman swallowed Netherlands-based Benckiser.
Information technology company CMG (CMG) rose 6.5 percent, while industry counterpart Sage Group (SGE) rose almost 7 percent, to register as the leading gainer in London.
Leading decliners in London was aeronautical engine maker Rolls-Royce (RR-), off 4.3 percent, a day after British Airways (BAY) grounded its fleet of seven supersonic Concorde jets. Rolls-Royce and France's state-owned Snecma made the engines for the planes. British Airways fell 3.3 percent.
Telecom stocks fell as the auction for next-generation mobile-phone licenses in Germany topped $43.3 billion. Deutsche Telekom (FDTE) fell 2.5 percent. Its T-Mobil division is one of six bidders vying for the five licenses for sale. Rival bidder British Telecom (BT-A) lost 0.8 percent and KPN Telecom (PFTE) slipped 0.5 percent.
In Paris, tire maker Michelin (PML) led the index higher, rising almost 2.5 percent. Auto parts maker Valeo (PFR) gained 1.3 percent and automaker Renault (PRNO) gained 1.9 percent.
Also among stocks moving higher, cosmetics maker L'Oréal (POR) climbed 2.9 percent, mobile phone equipment maker Alcatel (PCGE) jumped 3 percent, electronic defense firm Thomson-CSF (PHO) rose 2.1, and information technology consultant Cap Gemini (PCAP) gained 2 percent.
Tech stocks fell, with chip maker STMicroelectronics (PSTM) down 0.8 percent, Schneider Electric (PSU) slipping 1 percent, and data network operator Equant (PEQU) losing 3.3 percent.
But German techs rallied. Electronics components maker Epcos (FEPC) climbed 1.6 percent, Europe's top software company, SAP (FSAP), rose 2.1 percent, and computer chip firm Infineon Technology (FIFX) added 1 percent.
In Frankfurt, shares of ThyssenKrupp (FTKA) tumbled 5.2 percent after the steel and engineering company cancelled its planned initial public offering of its steel unit, citing weak market conditions. Anglo-Dutch steel maker Corus Group (CS-) fell 0.7 percent in London.
In Madrid, shares of Internet service provider Terra Networks rose 1.3 percent a day after U.S.-based merger partner Lycos (LCOS: Research, Estimates) topped Wall Street estimates with a pro-forma operating profit of $12.9 million, or 12 cents a share, for the quarter ended July 31, compared with a loss of $3.3 million, or 4 cents a share. Lycos also said it's hoping to take public its joint ventures late this year or early in 2001. 
-- from staff and wire reports
|
