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Bourses regain momentum
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November 11, 1998: 5:22 a.m. ET
Earnings drive European markets higher in quiet trading
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LONDON (CNNfn) - European markets moved forward early Wednesday, although the day's trading is expected to be subdued because several markets are closed for the Armistice Day holiday.
An overnight recovery in Asia set the positive tone, after two days of mild losses in Europe. Wall Street's decline Tuesday was shrugged off as profit-taking.
In London the FTSE 100 rose 45 points, 0.8 percent in early trade to 5,477.7.
Frankfurt's Xetra DAX rose 1 percent, off earlier highs, to 4,727.88.
Zurich's SMI rose 1.3 percent, 88 points, to 6,652.2.
Paris was closed for a public holiday.
Utilities are set to dominate the corporate earnings scene in London this week.
British Energy, the nuclear power generator, and Britain's biggest provider of electricity, reported half-year earnings Wednesday.
British Energy shares raced up 7 percent after the earnings release, following a similar-sized bounce Tuesday. Half-year operating profit of £46 million was well above analysts' expectations of about £18 million.
Telecom giant Cable & Wireless also reported half-year figures Wednesday. The group announced a 10 percent rise in pre-tax profits excluding one-time items.
The results caused little stir because most of the company's profit comes from two quoted subsidiaries which have already reported.
Majority-owned Hongkong Telecom reported last Friday, and 52 percent-owned Cable & Wireless Communications reported interim profits Tuesday.
Cable & Wireless stock rose more than 2 percent in early London trade. Analysts focused on the news the group is planning to attack the continental European market without troubled partner Telecom Italia.
Insurer CGU provided third-quarter figures which brought some relief to the sector, after very poor numbers from competitor Royal & Sun Alliance last week.
British American Tobacco bounced 5 percent on hopes that U.S. tobacco litigation might be resolved.
Hong Kong-related stocks HSBC and Standard Chartered rose sharply on the back of the territory's strong rise overnight.
In Frankfurt the market was dominated by results from the chemicals sector. Bayer's nine-month operating profit rose 5 percent. The stock rose 2 percent.
Rival BASF rose a similar amount. Pharmaceuticals group Schering inched up just 1 percent after unveiling results of its own.
Commerzbank, Germany's fourth-largest bank, was virtually unmoved after its third-quarter numbers were released.
The main feature of interest in Zurich was the continued volatility in soon-to-be-merged chemicals groups Clariant and Ciba Specialty Chemicals. In early trade Wednesday both groups rose some 4 percent, after sharp declines Tuesday.
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