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Europe closes higher
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December 27, 2000: 12:43 p.m. ET
Auto, tobacco shares lift markets; rise in crude prices fuels oil stocks higher
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LONDON (CNNfn) - Europe's main markets ended higher Wednesday as investors looked for bargains in both "new" and "old economy" stocks while oil shares got a boost from rising crude prices.
London's FTSE 100 gained 120.7 points, or 2 percent, to end at 6,218.2, led by business software company Misys (MSY) and business services firm Capita Group (CPI).
 In Paris, the blue-chip CAC 40 added 73.42 points, or 1.3 percent, to close at 5,857.15, with broadcaster TF1 (PTFI) and luxury goods firm LVMH (LVMH) topping the gainers.
Frankfurt's electronically traded Xetra Dax climbed 79.29 points, or 13 percent, to 6,330.69. Automaker BMW (FBMW) and specialty chemicals firm Degussa Huels (FDHA) were among the top advancers.
In other European markets, Amsterdam's AEX index and the SMI in Zurich added each 1.3 percent, while Milan's MIB 30 gained 1.4 percent.
 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
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 1.5 percent, with its oil and gas sub-index spurting 2.9 percent higher, while its tobacco sector rose 3.5 percent.
"There's a more comfortable feeling across the market," said Ian Harnett, head of European equity strategy at UBS Warburg. "People are starting to look back at fundamental valuations and that has pushed 'old economy' stocks back up."
In the currency market, the euro bought U.S. 93.03 cents, after earlier hitting a fresh five-month high of 93.41 U.S. cents, but was little changed from late U.S. trading on Tuesday.
U.S. stock markets were also higher in midday trade. The Nasdaq composite was up 1.7 percent, while the Dow Jones industrial average was 0.9 percent higher.
 European oil stocks rose as Brent crude for February delivery jumped 41cents to $24.07 a barrel on London's International Petroleum Exchange as a cold snap swept across North America. Shell Transport & Trading (SHEL), which owns 40 percent of Royal Dutch/Shell, the world's second-largest publicly traded oil company, rose 2.6 percent and BP Amoco (BP-), the world's third largest oil company, shot up 3.4 percent and BG Group (BG-) added 4.6 percent. TotalFina Elf (PFP) gained 2.6 percent in Paris.
Software companies were standing on firmer ground in London. Misys surged 7.3 percent and Logica (LOG) rose 2.9 percent. Business service firm Capita Group (CPI) added 7.8 percent.
click here for the biggest movers on the techMARK 100 in London
click here for the biggest movers on the Neuer Market in Frankfurt
click here for the biggest movers on the Nouveau Marché in Paris
British American Tobacco (BATS) climbed 5.5 percent and Imperial Tobacco (IMT) gained 1 percent.
 German luxury auto maker BMW (BMW) shifted up a gear, rising 5.7 percent after the Financial Times said BMW expects its former Rover subsidiary to repay a £500 million ($743 million) loan when it moves into profit. Other autos racing ahead included: PSA Peugeot Citroen (PUG), which climbed 2.8 percent and Renault (PRNO), which gained 2.5 percent.
Elsewhere, France's TF1 (TFI) added 5.2 percent while LVMH (LVMH) gained 5.9 percent.
Degussa Huels (FDHA) rose 4.2 percent in Frankfurt, while airline Lufthansa (FLHA) climbed 3.8 percent.
In the drug sector, shares in GlaxoSmithKline (GSK) slipped on their debut Wednesday as Glaxo Wellcome and SmithKline Beecham formally sealed their merger to forge the world's leading drugs group by market share. GlaxoSmithKline shares were traded at 1,840 pence, compared with a Glaxo Wellcome close of 1,848 pence on Friday.
French pharmaceutical maker Aventis (PAVE) gained 3.8 percent in Paris and health care firm Nycomed Amersham (NAM) climbed 6.7 percent.
Vodafone Group (VOD), the world's biggest mobile phone operator, climbed 2.4 percent after spending billions of pounds snapping up controlling takes in Japanese and Irish cellular operators before the Christmas break.
Among defense and aerospace stocks, defense electronics maker Thales (PHO), which was formally known as Thomson-CSF, shot up 1.9 percent and BAE Systems (BA-), which owns 20 percent of Airbus Industrie, rose 3.2 percent, while jet engine maker Rolls-Royce (RR-), which is seen as the main winner from Airbus's plans to build the A380 superjumbo, soared 5.8 percent.
-- from staff and wire reports 
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