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Bourses open nervously
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November 17, 1998: 5:26 a.m. ET
European markets wait for a decision from the U.S. Federal Reserve
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LONDON (CNNfn) - Europe's bourses began the day cautiously, with investors seemingly unwilling to take exposed positions in advance of a decision on U.S. interest rates later Tuesday.
There was some comfort in Europe from the Dow's close above the 9,000 level for the first time since July. The Nikkei's resilience in the face of a ratings downgrade by Moody's also provided some support.
In London the FTSE 100 slipped just 8 points in early trade to 5,502.7.
Frankfurt's Xetra DAX was weaker, sliding 0.8 percent to 4,748.35.
In Paris the CAC 40 eased 16 points to 3,605.88, while Switzerland's SMI moved slightly into positive territory. The index inched up 12 points to 6,786.4.
Attention focused on the telecom sector, with cellular heavyweight Vodafone producing half-year earnings later Tuesday. Vodafone shares were unchanged at 852 pence.
Telecom start-up Energis earlier reported a halving in its losses. Its shares rose 3.6 percent to 892 pence.
Guardian Royal bounced more than 4 percent to 290 pence on unconfirmed reports that French group Axa-UAP is considering a bid for the U.K. insurer.
In Germany Hoechst shares remained in the spotlight. Monday's report of a merger with France's Rhone-Poulenc was overshadowed Tuesday by Hoechst's announcement that it is splitting itself in two.
Industrial chemicals activities, under the name Celanese, will be spun off to shareholders, getting a separate listing.
Separately the group announced an 87 percent drop in third-quarter net income. Investors dumped the shares, leaving them down 2 percent at 76.75 marks.
Rivals BASF and Bayer also moved gently lower.
The first day's official trading in DaimlerChrysler began well. The shares rose 1 percent to 142.45 marks.
Newspaper reports said Viag is discussing a takeover of Switzerland's Alusuisse. The idea found few supporters in Frankfurt, where Viag shares tumbled almost 4 percent to 1,150.75.
In Switzerland Alusuisse jumped 5 percent to 1,716 francs.
UBS retraced its gains of recent days as the bank announced disappointing nine-month earnings with big trading losses. The shares slipped more than 1 percent to 378 francs, off the day's lows.
Shares in rival CS Group were unchanged.
Shares in Paris were mildly lower across the board. A bearish trading statement by turbine maker Alstom left its shares down more than 7 percent at 140 francs.
Volvo shares perked up in Sweden after the auto group said it would be cutting staff, although it wouldn't be pinned down on the size of the job cuts. Press reports put the figure as high as 4,300.
The shares rose 2 percent to 177 francs.
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