Lifeless day for bourses
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November 25, 1998: 12:57 p.m. ET
European markets use U.S. holiday as excuse against any sharp moves
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LONDON (CNNfn) - Activity nearly petered out in Europe Wednesday, with investors content to take it easy in advance of the U.S. Thanksgiving holiday. Bourses moved in a tight range, unwilling to move far in either direction.
An attempt at an early morning rally faltered, and Asian markets provided little lead. Wall Street's dull opening sealed a generally lifeless day.
In London the FTSE 100 eased 43 points, 0.74 percent, to close at 5,755.3.
Frankfurt's Xetra DAX rose a tiny 1.99 points to close at 4,956.53.
Zurich's SMI slipped 1.6 percent, 114.5 points, to 7,055.8.
In Paris the CAC 40 just managed to keep its head above water. The index gained just 10.46 points to 3,849.84.
With no real takeover excitement, markets were forced to turn their attention to the relatively poor outlook for corporate earnings.
The media company Granada (GAA) bucked the trend by posting an 11 percent rise in full-year profit.
The company made encouraging noises about not seeing any downturn in consumer spending in its various leisure and broadcasting businesses. That helped the shares to rise 4 percent to 869 pence.
The good news benefited rival hotelier Ladbroke (LADB), whose shares surged more than 8 percent to 243 pence, for the biggest gain in the FTSE Wednesday.
Utility National Power (NPR) reported a near 20 percent tumble in half-year profits, but suffered a topsy-turvy day in the market.
Investors initially applauded the purchase of an electricity supply business, and the decision to divest some electricity generating capacity. The mood turned darker however, and by the close National Power shares were down 4 percent at 531 pence.
It was a bad day for the insurers, which have had a volatile time recently. Stocks such as Legal & General (LGEN), and CGU (CGU) dropped 4 percent.
Marks & Spencer (MKS) shares were unmoved, despite rising speculation the group's succession battle will be solved imminently.
In Frankfurt the banks took the lead. Deutsche Bank (FDBK) shares rose 2.25 marks to 106.85 marks.
DaimlerChrysler shares eased 2.2 marks to 153 marks, despite Deutsche denying it plans to sell its stake in the auto group.
The conglomerate Viag (FVIA) made something of a comeback after taking a beating in recent weeks. The shares jumped more than 4 percent to 1,058.5 marks.
Banking stocks returned to the limelight in Paris. Vague talk of consolidation spurred shares in the sector to gains of at least 2 percent. BNP (PBNP) jumped 4 percent to 435 francs.
Rhone-Poulenc (PRPP) stock slid 1.5 percent to 286 francs as the group confirmed it is discussing a merger with Germany's Hoechst (FHOE).
A warning the profit growth this year would be meager held back Nestle in Switzerland. The shares tumbled 183 francs to close at 2,940 francs.
The banks fell out of favor, too. UBS slipped nearly 10 francs to 420.5 francs and CS Group eased 7 francs to close at 236 francs.
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