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Europe bounds ahead
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August 24, 2001: 12:26 p.m. ET
Techs rally across European markets amid renewed recovery hopes
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LONDON (CNN) - Resurgent hopes of a recovery in demand for high-tech goods fueled sharp gains across European bourses Friday.
A report late Thursday from Cisco Systems, the world's No. 1 maker of computer network equipment, encouraged investors to bet on technology and telecom companies rebounding from a dismal first half of 2001.
Frankfurt's Xetra Dax charged 3.1 percent higher to 5,350.02 in late trading, led by a blazing 9 percent gain for Deutsche Telekom.
London's FTSE 100 index rose 1.4 percent to close at 5,471.9 while the CAC 40 in Paris ended up 2.2 percent at 4,916.56.
Cisco (CSCO: Research, Estimates) had said it saw signs that business was stabilising after steep falls earlier this year.
"This is what this market needs more than interest rate cuts," Tom Hougaard of betting company Financial Spreads told Reuters. "It needs to be told by the big companies that things are stabilising or even picking up."
Cisco's comments ensured a buoyant start on Wall Street Friday, with traders also encouraged by a report showing unexpectedly vibrant demand for new homes in the U.S. in July.
By late morning, the tech-heavy Nasdaq Composite index was up 3.1 percent to about 1,900, while the Dow Jones industrial average tacked on 2 percent to reach 10,431.
In Frankfurt, Deutsche Telekom (FDTE) was the biggest gainer, bounding up 9.2 percent. Even after the dramatic comeback, the company's shares still are 25 percent down on their price at the close August 6, the day before Deutsche Bank executed a sale of more than  1 billion worth ($900 million) of Telekom shares for an undisclosed client – now known to be Hong Kong conglomerate Hutchison Whampoa.
The Dax index's next-best performers were Infineon Technologies (FIFX), Europe's second-largest semiconductor producer, which rose 8 percent per cent, and engineering and communications company Siemens (FSIE), up 6.9 percent.
In London, cable company TeleWest Communications (TWT) led the gainers, closing up 10.7 percent, followed by electrical parts distributor Electrocomponents (ECM), which climbed 6.3 percent.
Internet data carrier Cable & Wireless (CW-) rose 6.3 percent, and its rival Energis (EGS), a victim of repeated sell-offs in recent weeks, climbed 3.7 percent.
Software firm Misys (MSY) closed up 5.5 percent and Spirent (SPT), a maker of telecoms testing equipment, gained 6.3 percent.
Vodafone Group (VOD) advanced 3.1 percent after news that its interests in Japan had been strengthened by a shake-up of operations at J-Phone, Japan's third-largest mobile-phone company.
Vodafone, the world's No. 1 cellular network operator and J-Phone's largest shareholder, is backing a move to merge the Japanese firm's three regional businesses.
Hutchison 'not dumping Vodafone shares'
Vodafone's stock also was boosted by news that Asian ports-to-telecoms conglomerate Hutchison Whampoa had denied reports it intended to sell its stake in the UK company.
Among the few exceptions to the tech-and-telecom recovery in London was Colt Telecom Group (CTM), a provider of telephone services to business customers, which shed a further 3.4 percent.
In Paris, consumer electronics maker Thomson Multimedia (PHO) topped the leader board, up 6.6 percent, while Alcatel (PCGE), the region's fourth-ranked telecom equipment maker, rose 6.5 percent.
STMicroelectronics (PSTM), Europe's largest maker of semiconductors, climbed 6 percent, and France Telecom (PFTE) reversed earlier losses to race up 6.5 percent.
In Amsterdam, the AEX index rose 1 percent, while the SMI in Zurich and Milan's MIB 30 both closed 1.5 percent higher.
The telecom and electronics sectors were among the best performing industry segments on the FTSE Eurotop 300, a broader index of the region's largest stocks, both rising 3.8 percent. The main index was up 1.6 percent.
The information technology and computer sub-indices also were in positive territory, both rising around 2.9 percent. 
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