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Europe boosted by telecoms
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February 21, 2002: 12:52 p.m. ET
Telecoms lead markets higher, DaimlerChrysler lifts auto sector
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LONDON (CNN) - European markets ended higher on Thursday, as DaimlerChrysler led auto stocks higher and telecoms posted a mini recovery despite early declines on Nasdaq.
London's FTSE 100 rose 1 percent to 5,073.3 and the CAC 40 blue chip index in Paris gained 1.1 percent to 4,287.22, while Frankfurt's electronically traded Xetra Dax was up 1.2 percent to 4,838.16 in later trading (the German market closes at 1900 GMT).
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, rose 1 percent, with the computer, and oil and gas sectors rising along with auto and telecoms stocks.
Telecoms stocks, which have been battered recently by worries about high
levels of corporate debt, were among the biggest gainers on Thursday.
Mm02 (OOM), the UK mobile phone operator, was the top gainer in London, adding 6.3 percent to its stock value, while mobile phone giant Vodafone (VOD) climbed 4.6 percent as bargain hunters moved in to take advantage of a 30 percent drop in its market capitalisation in the past year.
Deutsche Telekom [FSE DTEG] was up 2.6 percent in late Frankfurt trading, while France Telecom (FTE) rose 5.4 percent as its stock continued to benefit from a dispute with German partner MobilCom over investment in next generation mobile phone networks. French mobile phone group Orange (ORA) was also higher, jumping 4.1 percent in Paris.
The tech sector did not fare as well as telecoms on Thursday.
Energis, Britain's biggest Internet data carrier, plunged 69.7 percent after it said it was in talks with its bankers about the possible sales of its overseas operations. The company, which issued its third profit warning last month, is struggling to meet commitments on loans of  725 million ($1 billion).
Europe's largest computer services firm, Cap Gemini (PCAP), dropped 2.1 percent after it said it expected sales to decline more than 10 percent year-on-year and said it did not see growth or a recovery in its operating margin before the middle of 2002.
Meanwhile, the auto sector was led higher by DaimlerChrysler (FDCX), the world's third-largest car maker, which was the top gainer in late trading in Frankfurt, rising 4.6 percent. On Wednesday, it reported a loss of 662 million ($589 million) for 2001 compared with a profit of 7.89 billion a year earlier. Sales dipped 0.6 percent to 152.8 billion.
In the financial sector, French bank Societe Generale (SOGN) added 2.7 percent to its market value after it posted a 20 percent drop in profits, in line with forecasts.
Among Europe's smaller markets, Amsterdam's AEX index rose 1.1 percent and Milan's MIB30 index gained 1.2 percent, while the SMI in Zurich was up 0.4 percent.
In the U.S. on Thursday, Wall Street struggled to move forward at midday as signs of strength in the economy were watered down by weakness in tech names such as Ciena, Intel and Cisco Systems.
The Nasdaq composite index fell 22.43 points, or 1.3 percent, to 1,753.14, while the Dow Jones industrial average was up 14.41 points, or 0.2 percent, to 9,954.59. 
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