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European markets end higher
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March 6, 2002: 1:05 p.m. ET
Telecoms and tech stocks bounce back, as water and media sectors add to gains
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LONDON (CNN) - European markets ended a roller coaster day on the upside on Wednesday, as tech and telecoms stocks recouped earlier losses as investors looked to the U.S. for new signs of a recovery.
Early gains by U.S. blue chip stocks helped lift European markets, ahead of the Federal Reserve's "beige book " of U.S. economic conditions, which will be released at 1900 GMT.
London's FTSE 100 rose 0.6 percent to 5,245.5 and the CAC 40 blue chip index in Paris climbed 0.2 percent to 4,588.14, while Frankfurt's electronically traded Xetra Dax was up 1.3 percent to 5,294.27 in late trading (the German market was to close at 1900 GMT).
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, rose 0.2 percent, with the utility, leisure and media sectors among the top gainer.
Leading the utilities higher was International Power (IPR), the British independent power producer. It was the best performer in London, soaring 12.4 percent in line with its U.S. peers amid hopes an economic recovery may stimulate demand for more electricity.
Vivendi Environnement, the French multi-utility unit of Vivendi Universal, gained 4.4 percent in Paris, while Severn Trent Water (SVT), Britain's biggest water company, rose 1.1 percent in London and Scottish Power (SPW) ended up 1.9 percent but off its highs for the session.
The media sector was also strong at midday, led by TF1 (PTFI), France's biggest broadcaster. It was the top gainer in Paris, jumping 9.2 percent, after investment bank Goldman Sachs raised its rating on the stock on hopes of a recovery in the advertising sector.
Vivendi Universal (PEX), Europe's biggest media company, gained 2.3 percent after Chief Executive Jean Marie Messier said the company would not sell new shares and was not lining up more acquisitions. The world's second-largest media company posted a hefty 13.6 billion euros ($11.6 billion) annual loss on Tuesday.
France's Havas (EURC), the world's fifth largest advertising group, rose 5.6 percent after reporting a deeper than expected net loss of 57.8 million euros in 2001, although it said previous restructuring efforts would save 70 million euros this year.
Telecoms stocks, which were in and out of favour most of the session, managed to end the day higher. Vodafone (VOD), the world's biggest mobile phone company, gained 4.8 percent, while UK mobile phone operator mm02 (OOM), which was recently demerged from BT Group, rose 4.6 percent and Deutsche Telekom (DTEG) was up 2.9 percent in late trading in Frankfurt.
French hotel giant Accor (ACCP) added 4 percent after saying it expected to return to double-digit growth in 2003, barring a recurrence of events such as the September 11 attacks that paralysed the industry last year.
Gallaher Group (GLH), the maker of Benson & Hedges and Silk Cut in Britain, was up 1.8 percent but off its morning highs. The company said profit rose 10 percent after a string of acquisitions in Austria and Russia.
European steel stocks recouped some of their sharp losses from Tuesday, when the sector tumbled in anticipation of U.S. President George W. Bush imposing 30 percent tariffs on imports.
Arcelor, the world's biggest steel maker, was off 1.1 percent and France's Usinor -- which merged with Luxembourg's Arbed and Aceralia of Spain to form Arcelor -- tumbled 8.2 percent after saying it made 2002 loss of 720 million euros. Germany's Thyssen Krupp (TKAG) fell 0.9 percent, while Corus, the Anglo-Dutch steel maker, lost 0.3 percent.
French supermarket giant Carrefour (CARR) was the biggest loser in Paris, falling 5.3 percent after it reported a 15 percent rise in 2001 profits but also issued a cautious 2002 outlook amid global economic uncertainty.
Among Europe's smaller markets, Amsterdam's AEX index rose 0.1 percent and Milan's MIB30 index added 1 percent, while the SMI in Zurich was up 0.1 percent.
In the U.S. on Wednesday, an upgrade of banking company J.P. Morgan Chase gave the Dow Jones some strength in early trading, along with economic data showing a rise in U.S. factory orders in January. However, weakness in the network storage sector kept the tech-heavy Nasdaq in the red.
Deutsche Bank Alex. Brown upgraded J.P. Morgan Chase (JPM: up $1.04 to $33.55, Research, Estimates) to a "strong buy" with a $46 price target, saying that it believed the economy is strengthening and that JPM's shares stand to benefit. But network storage provider McData (MCDT: down $3.98 to $11.95, Research, Estimates) sent a chill through the storage sector after it lowered its earnings per share and revenue estimates for the first quarter late Tuesday.
In midday trading, the Dow Jones industrial average was up 100.9 points, or 1 percent, to 10,534.31, while the tech-laden Nasdaq composite index was down 4.31 points, 0.2 percent to 1,861.98. 
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