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European markets recover
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December 21, 2001: 12:21 p.m. ET
Bourses edge up after positive U.S. data
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LONDON (CNN) - European markets recovered from three consecutive sessions of losses on Friday, with gains in the energy sector and positive U.S. data.
London's FTSE 100 rose 1.6 percent to 5,160.6 and the CAC 40 blue chip index in Paris was up 1.6 percent to 4,499.3, while Frankfurt's electronically traded Xetra Dax rose 1.7 percent to 5016.5.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, rose 2 percent, with the information technology sector up 3 percent, and the oil and gas sector up 3.2 percent.
In the U.S. the arrows pointed upward for stocks as investors were cheered by a strong consumer confidence report coupled with some upbeat guidance from technology components.
In midday trade, the Dow Jones industrials rose 60.61 points to 10,046.62, while the Nasdaq composite gained 23.72 to 1,942.26 and the Standard & Poor's 500 index rose 4.29 to 1,144.88.
A fourth profit warning this year sent Europe's third-largest insurer Zurich Financial spiraling downwards. The stock dropped 4.8 percent after issuing its fourth profit warning this year, blaming the September 11 terror attacks and slumping markets.
Allianz (FALZ), Europe's No. 2 insurer, lost 0.1 percent in Frankfurt, while the biggest insurer Axa (PCS) was up 0.3 percent in Paris after falling in early trading. Europe's largest reinsurer Munich Re (FMUV3) was up 1.2 percent.
Zurich Financials now expected a 2001 net loss of $200 million to $400 million.
"A profit warning of this magnitude is very surprising; once more, it raises questions about confidence in the company," said Zuercher Kantonalbank analyst Georg Marti.
Spanish-quoted companies with investments in Argentina rallied despite the deteriorating situation in Argentina. The stricken country's president Fernando de la Rua stepped down after days of protests against his economic austerity measures.
"Investors now believe that most of the Spanish companies are sufficiently hedged against risks in Argentina," the pan-European trader said.
Madrid's IBEX 35 blue chip index was up 0.7 percent, as Spain's No. 2 bank Banco Bilbao Vizcaya Argentaria increased 1.1 percent, Santander Central Hispano was up 0.2 percent and Telefonica rose 1.1 percent.
The technology sector came under early pressure after networking giant Juniper Networks (JNPR: up $0.86 to $19.71, Research, Estimates) said its fourth-quarter earnings will fall short of Wall Street forecasts by 50 percent and revenue also will be disappointing.
Europe's second-largest chipmaker Infineon Technologies (FIFX) was up 0.9 percent and Sweden's Ericsson, the world's biggest supplier of mobile phone infrastructure, was up 2.8 percent. The region's No. 3 Philips Electronics was up 2.7 percent.
France's Thomson Multimedia (PHO) was down 0.9 percent as Credit Suisse First Boston reduced its recommendation on the consumer electronics company to a cautious "hold" from "buy" for valuation reasons.
In Amsterdam the AEX index rose 2.5 percent and the SMI in Zurich was also 1 percent higher, while Milan's MIB30 index was up 2.5 percent. 
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