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European markets end higher
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January 31, 2002: 12:59 p.m. ET
Tech stocks lead gains on better-than-expected earnings, positive words from U.S. Fed
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LONDON (CNN) - European markets ended higher on Thursday, with tech stocks holding on to most of their earlier gains after positive results from the sector.
Stocks also received a boost from the U.S. Federal Reserve's decision to leave interest rates on hold, which investors took as an indication of the central bank's confidence in the economic recovery.
London's FTSE 100 rose 1.5 percent to 5,164.8 and the CAC 40 blue chip index in Paris gained 1.2 percent to 4,461.87, while Frankfurt's electronically traded Xetra Dax climbed 0.4 percent to 5,074.18 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, was up 1.2 percent, with the IT, computers services and mining sectors ending in positive territory.
Alcatel, Europe's fourth-biggest telecom equipment maker, ended 2.5 percent higher - but off its highs for the session -- after it reported a bigger-than-expected fourth-quarter operating loss of  368 million. However, investors appeared to like news that the French group had reduced debt by a third.
Finland's Nokia, the world's biggest maker of mobile phones, was up 3.7 percent in Helsinki and Sweden's Ericsson, the biggest supplier of wireless infrastructure, jumped 7 percent.
In the technology sector, Infineon Technologies (FIFX), Europe's second-biggest chipmaker, was up 3.7 percent - off its session highs - in late Frankfurt trading. The German company said on Thursday it was in talks with South Korea's Hynix Semiconductor. However, neither company would confirm a Japanese newspaper report that the discussions were aimed at a corporate tie-up. UK chip designer ARM Holdings (ARM) was up 4.5 percent in London.
Mining giant Rio Tinto (RIO) rose 4.3 percent in London after posting strong profits for 2001, although it saw mixed signals for metals and commodities demand this year.
Deutsche Bank [FSE:DBKGn], Europe's biggest bank, rose 1.2 percent in late trading after reporting a 67-percent plunge in profit in 2001 as the cost of bad loans mounted. The bank's shares have been gaining since it announced changes to its management structure, reducing the number of board members and putting more power in the hands of the chief executive.
KLM, Europe's fourth-biggest airline, rose 6.5 percent in Amsterdam. The company reported a better-than-expected third-quarter net loss of 94 million and said there had been a "noticeable" improvement in trading conditions in January.
AstraZeneca (AZN), Europe's second biggest drug company, jumped 5.2 percent after posting better-than-expected fourth-quarter profit, due to increased demand for ulcer drug Nexium. Net income rose to $759 million, or 43 cents a share, from $533 million, or 30 cents, in the year-ago period. Sales climbed 7.2 percent to $4.4 billion.
Among Europe's smaller markets, Amsterdam's AEX index rose 1.5 percent and Milan's MIB30 index edged up 0.3 percent, while the SMI in Zurich was up 0.4 percent.
In the U.S. on Thursday, Wall Street rose at midday after household products maker Procter & Gamble (PG: up $3.36 to $81.65, Research, Estimates) posted better-than-expected quarterly profit and chipmaker Intel enjoyed a brokerage upgrade. But the broader market was flat, struggling to extend a rally from the previous session.
The Nasdaq composite index slipped 0.8 point, or 0.4 percent to 1,912.63, while the Dow Jones industrial average climbed 55.9 points, or 0.6 percent, to 9,818.76. 
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