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European markets end higher
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January 23, 2002: 12:38 p.m. ET
Energy, drug stocks lead gainers; mixed reviews for tech earnings
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LONDON (CNN) - European markets ended mostly higher on Wednesday as strong support for energy and drug stocks countered concerns over tech earnings.
London's FTSE 100 rose 0.6 percent to 5,180.6 and the CAC 40 blue chip index in Paris edged up 0.1 percent to 4,450.81 while Frankfurt's electronically traded Xetra Dax was up 1.2 percent at 5,107.18 in late trading (the German exchange closes at 1900 GMT).
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, rose 0.6 percent, with oil and gas, computer and pharmaceutical sectors among the big gainers.
STMicroelectronics (PSTM), Europe's biggest chip maker, ended down just 0.2 percent - off its lows for the session -- after posting fourth-quarter results in line with expectations but predicted another dip in business early this year.
Siemens (SIE), the German communications giant, was up 1 percent in late trading in Frankfurt after reporting a first-quarter profit but that its telecom unit posted a loss, as was widely expected. CEO Heinrich von Pierer said he expects positive cashflow for 2002.
German software giant SAP (SAPG) was up 4.1 percent in late trading after strong fourth-quarter results and a 2002 sales growth forecast of 15 percent.
Logica (LOG), which makes software for text messages over mobile phones, fell 3.9 percent in London to a 32-week low after being beaten out for a lucrative deal with Vodafone.
Philips Electronics, Europe's third-biggest chip maker and biggest consumer electronics company, fell 3.2 percent, while No. 2 Infineon Technologies (FIFX) was flat in late trading in Frankfurt.
Finnish mobile phone maker Nokia was up 4 percent while Ericsson, the world's biggest supplier of high-speed mobile phone networks, declined 0.4 percent, off its lows for the session.
French software maker Dassault Systems (DAST) was the top gainer in Paris, ending up 3.5 percent after the company announced a joint venture with Bombay-based Geometric Software Solutions which it said would bring in revenues of about $10 million over the next two to three years.
The oils and gas sector was strong, as crude prices rose after U.S. refiners said they were cutting back on output. Brent crude for March delivery was up 43 cents to $19.16 a barrel in late trading in London.
Royal Dutch/Shell shares were up 2.7 percent in Amsterdam, with the company also announcing on Wednesday that it would buy out its two German partners - Siemens and E.ON -- in one of the world's largest power ventures. British oil giant BP (BP) rose 3.6 percent, while TotalFinaElf (TOTF) was up 2.5 percent in Paris.
The drug sector got a boost from German pharmaceutical group Schering [FSE: SCHG], which was up 6.3 percent in late Frankfurt trading after Goldman Sachs raised its stock to "market outperformer" from "market perform." The investment bank said it raised its recommendation partly on the strength of Schering's oral contraceptive drug Yasmin. Drug maker Bayer (BAYG) was up 2.3 percent and British group GlaxoSmithKline [LSE: GSK] also rose 2.3 percent.
Among Europe's smaller markets, Amsterdam's AEX index slipped 0.3 percent and Milan's MIB30 index was up 0.3 percent, while the SMI in Zurich rose 0.7 percent.
In the U.S. on Wednesday, Wall St. edged higher led by technology stocks, but an earnings forecast cut for the S&P 500 index by respected strategist Abby Joseph Cohen added some jitters to the markets.
The tech-laden Nasdaq composite index was up 12.67 points, or 0.67 percent, to 1,895.2, while the Dow Jones industrial average edged up 8.44 points, or 0.1 percent, to 9,722.24. 
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