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Europe ends higher
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October 31, 2000: 12:48 p.m. ET
Auto stocks fuel gains in Paris, Frankfurt; financial stocks lift London
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LONDON (CNNfn) - European stock markets rallied to close higher Tuesday, driven by upbeat earnings reports and gains in so-called "old economy" banking and auto stocks.
 London's benchmark FTSE 100 index rose 50 points, or 0.8 percent, to 6,438.4, led by a 7.6 percent gain in mining company Billiton (BLT) and strength in financial shares.
The blue-chip CAC 40 in Paris gained 100.82 points, or 1.6 percent, to 6,397.66 as carmaker Renault (RNO) raced 8 percent higher.
Frankfurt's electronically traded Xetra Dax climbed 150.87 points, or 2.8 percent, to 7,077.44, led by forklift maker Linde (FLIN) and carmaker Volkswagen (FVOW).
 click here for the biggest movers on the ftse 100 in London
 click here for the biggest movers on the dax 30 in Frankfurt
 click here for the biggest movers on the cac 40 in Paris
Among other leading European markets, the AEX index in Amsterdam rose 0.7 percent, the MIB30 in Milan added 0.6 percent, and the SMI in Zurich was 0.4 percent higher.
The broader FTSE Eurotop 300 index, composed of a basket of Europe's largest companies, rose 0.9 percent. Its automotive component jumped 3.7 percent while its mining sub-index gained 4 percent.
In the currency market, the euro was slightly stronger against the dollar, fetching 84.89 U.S. cents compared with 84.08 in late New York trading Monday.
U.S. markets were higher in midday trade. The Nasdaq composite jumped 4.3 percent while the blue-chip Dow Jones industrial average added 0.3 percent.
"Old economy" at the forefront
Auto stocks revved up in Frankfurt and Paris. French carmaker Renault (PRNO) gained 8 percent amid upbeat signs at its Japanese affiliate, Nissan Motors.
 In Germany, Volkswagen rose 4.5 percent and rival DaimlerChrysler (FDCX) gained 4.2 percent. Truck maker MAN (FMAN) rose 3.4 percent and forklift maker Linde (FLIN) gained 5.9 percent, topping Frankfurt's gainers.
French tire maker Michelin (PML) surged 7.4 percent.
Among other gainers in Paris, industrial gas company Air Liquide (PAI) gained 7 percent in Paris after reporting third-quarter sales jumped 26 percent, and Schneider Electric (PSU) rose 8.9 percent, leading the CAC gainers.
French glass maker Saint-Gobain (PSGO) climbed 5.8 percent ahead of its quarterly sales report, which was due after the market closed Tuesday.
Elsewhere on the corporate-report front, German retailer Metro (FMEO) shed 3.6 percent after saying nine-month sales rose 7.8 percent to DM64.61 billion ($27.9 billion), matching analysts' expectations.
Mortgage lender Alliance & Leicester (AL-) jumped 5.6 percent in London after detailing a new strategy to lower costs and raise revenue by cutting 1,500 job cuts over the next three years. The lender, which has been suffering from lower interest margins and competition in its core mortgage and savings business, said it hopes to cut annual costs by £100 million ($145 million) by the end of 2003. 
Among its British rivals, Halifax (HFX) rose 4.7 percent and Abbey National (ANL) rose 5.2 percent.
French financial stocks also were higher, with bank Société Générale (PGLE) up 4.9 percent and rival Crédit Lyonnais (PCL) 4.2 percent higher. AXA (PCS), the world's largest insurer, gained 4.6 percent. Germany's Deutsche Bank (FDBK) gained 3.5 percent.
Airlines also were higher, soaring on the tails of KLM Royal Dutch Airlines, which surged 6.2 percent in Amsterdam after reporting better than expected results Monday. British Airways (BAY) was up 6.1 percent and Germany's Lufthansa (FLHA) gained 3.1 percent.
Billiton, the world's third-largest aluminum producer, soared as the price of the base metal rose.
Some tech shares jump on bandwagon
Elsewhere, telecom equipment firm Alcatel (PCGE) rose 1.3 percent after reporting a larger-than-expected 109 percent increase in third-quarter operating profit to  619 million ($521 million).
Information technology consultant Logica (LOG) rose 7.3 percent.
Cable operator Telewest Communications (TWT) rose 6.5 percent.
In Paris, heavyweight France Telecom (PFTE) fell 3.4 percent.
British drug maker SmithKline Beecham (SB-) slid 4.6 percent after its update on some products disappointed investors. SmithKline reported a 27 percent jump in net profit in its last independent results before merging with Glaxo Wellcome. Glaxo Wellcome (GLXO) ended down 4.1 percent. 
-- from staff and wire reports
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