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Bourses rooted to the spot
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November 17, 1998: 12:57 p.m. ET
U.S. interest rates call the tune in inert European markets
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LONDON (CNNfn) - European markets refused to budge one way or the other Tuesday, with all eyes on a meeting of the U.S. Federal Reserve.
Markets traded in a narrow range all day, although all the principal markets trended gently lower when Wall Street opened in a sluggish mood.
In London the FTSE 100 inched down 7.8 points to close at 5,502.7.
Frankfurt's Xetra DAX suffered the most in the lackluster conditions, falling 1.4 percent, or 67 points, to 4,718.34.
In Paris the CAC 40 slipped 20 points, 0.56 percent, to 3,601.57.
Zurich's SMI made it onto positive ground, rising just 14.4 points to 6,789.0.
There was plenty of corporate activity to keep brokers busy, with results coming thick and fast and amid a smattering of M&A rumors.
In London, Guardian Royal benefited from speculation that France's Axa-UAP might be lining up a bid for the U.K. insurer.
Axa wouldn't comment, and Guardian shares rocketed 7 percent to 293 pence.
Earnings from cellular network operator Vodafone were what the market expected, and profit taking forced the shares down 1.5 percent to 857 pence.
Telecom start-up Energis reported a halving in half-year losses and made very bullish noises about future trading. A number of brokers upgraded their forecasts, sending the shares up 2 percent to 878 pence.
Shares in National Grid rose 2.5 percent to 451 pence. The electricity utility owns a majority stake in Energis.
Colt Telecom basked in reflected glory, running up 6 percent.
In Paris, Axa shares welcomed the merger speculation, running 4 percent ahead to 657 francs.
Turbine maker Alstom suffered after issuing a disappointing statement on full-year prospects. The shares tumbled more than 6 percent to 141.5 francs.
Auto stocks fell dramatically out of favor, with Michelin tumbling 5 percent and Renault shares reversing more than 3 percent to 220 francs.
Steel maker Usinor dropped 5 percent, after British Steel's dismal figures Monday.
Hoechst shares fell 1.4 marks to 76.9 marks in Frankfurt. The company announced a major restructuring, including the spin off of its industrial chemicals unit, Celanese. The market had been expecting news on the rumored merger with French group Rhone-Poulenc
DaimlerChrysler stock got off to an inauspicious start in its first official day of trading. After an early flurry, the shares settled back, to end the day in Frankfurt down 1.6 marks at 139.3 marks.
Viag shares sagged nearly 7 percent to 1,117 marks after talks regarding a takeover of Swiss group Alusuisse became public.
In Zurich, Alusuisse shares bounced 5 percent to 1,718 francs.
UBS stock recovered in afternoon trade after the company announced awful half-year earnings. At one stage the shares were down 3 percent, but they revived to 385 francs, a gain of 1.5 francs, by the close.
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