NEW YORK (CNNfn) - Handset maker Nokia led a thumping tech-led European stock rally Thursday as investors cheered reassuring earnings guidance from U.S. tech bellwethers, Dell Computer and Cisco Systems.
Cisco (CSCO: Research, Estimates), the world's largest maker of Internet working equipment, sparked the tech-led rally by saying it is comfortable with analysts' estimates of its first-quarter results.
European gains also were encouraged by Dell when the No. 1 U.S. PC maker reaffirmed its earnings guidance Thursday for the latest quarter. Dell said demand had rebounded more quickly than the company had expected after the Sept. 11 attacks.
Britain's leading stock index soared to its highest level since the attacks after an expected Bank of England rate cut and encouraging U.S. corporate news.
London's FTSE 100 rose 2.8 percent to 5,016.20 and the CAC 40 blue chip index in Paris jumped 4.3 percent to 4,195.80, while Frankfurt's Xetra Dax gained 1.9 percent to 4,519.14.
Technology, telecom, media and software companies all benefited from Cisco's earnings clarification. Finland's Nokia, the world's biggest mobile phone maker, soared 11.5 percent to levels last seen in late August.
ARM Holdings (ARM), Europe's biggest chip designer, surged 17.8 percent, the region's biggest chip maker STMicroelectronics (PSTM) climbed 7.9 percent, and Philips Electronics, Europe's biggest consumer electronics and No.3 chip maker, also jumped.
Cap Gemini (PCAP), Europe's biggest computer services company, rose 4 percent in Paris, accounting software house Sage (SGE) rose 2.5 percent, and Logica (LOG), which makes software that allows text messaging over mobile phones, gained 5.8 percent.
Dassault Systeme (PDSY), which makes software used to design aircraft, soared 7.5 percent in Paris.
British Telecom (BT-A), Britain's second-biggest phone company, climbed 6.2 percent to 363.6 pence as investment bank Deutsche Bank reiterated a "strong buy" recommendation on the stock and an end-2002 price target of 538p.
Deutsche Telekom (FDTE), Europe's biggest phone company, gained 1 percent.
Vodafone Group (VOD), the world's biggest mobile phone company, rose 3.4 percent. The company said it is on target to reach its customer growth target by 20 percent.
The battered airline industry, which has seen its shares fall by at least a third since Sept. 11 terror, was having a mixed session as carriers introduced drastic measures to reduce losses.
KLM Royal Dutch Airlines, Europe's fourth-largest carrier, rose 1.7 percent after announcing 2,500 job cuts and plans to cut capacity by 15 percent. The airline also is asking employees to take "substantial" pay cuts.
British Airways (BAY), Europe's biggest airline, slipped 3.5 percent. It reported a 22 percent drop in passenger traffic during September. Deutsche Lufthansa (FLHA) advanced almost 5 percent.
In Amsterdam, the AEX index jumped 3.4 percent and the SMI in Zurich was 2.7 percent higher, while Milan's MIB30 index rose 2.6 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 3.3 percent, with the information technology, mining and life assurance sub-sectors in positive territory. 
-- from staff and wire reports
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