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Bourses stuck in tight range
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December 8, 1998: 5:28 a.m. ET
Lack of direction keeps European markets becalmed
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LONDON (CNNfn) - European markets tried once more to shake off their torpor in early Tuesday trade, but the session was shaping up to be a repeat of Monday's listless trading.
In the absence of any major news, bourses moved gently higher, although there was no real impetus from performances on Wall Street or in Asia.
In London the FTSE 100 gained 45 points to 5,622.1.
Frankfurt's Xetra DAX inched up 5 points to 4,726.16.
In France the CAC 40 rose just 2 points to 3,773.56, while Switzerland's SMI eased 25 points to 6,834.1.
The old chestnut of lower interest rates raised its head in the U.K., with a rate cut all but guaranteed according to most economists. The Bank of England deliberates on monetary policy Wednesday and Thursday. Last week's reduction in European rates has highlighted the discrepancy between borrowing costs in the U.K. and in mainland Europe.
Brewer and leisure operator Scottish & Newcastle (SCTN) rebounded 2 percent to 720 pence, after its first-half results were announced. They contained no shocks.
Fund management group Amvescap (AVZ) gained 3 percent to 446 pence in what looked like a belated attempt to remain in the blue-chip FTSE 100. The make-up of the index will be rearranged according to market values at Tuesday's close. Amvescap is one of the companies close to being expelled.
Paris traders searched in vain for inspiration. LVMH (PMC) slipped 1 percent to 1,032 francs on reports the luxury goods giant is interested in bidding for the cosmetics arm of pharmaceuticals group Sanofi (PSQ).
The unit is surplus to requirements following Sanofi's merger with Synthélabo (PSD).
Total (PFP) failed to impress investors when it said it could extract even greater cost savings from its acquisition of Belgium's PetroFina. Total shares slipped another 1 percent to 583 francs anyway.
In Frankfurt BMW (FBMW) continued its partial recovery, gliding 20 marks higher to 1,075 marks.
Mannesmann (FMMW) stock rose 2.5 marks to 185 marks after its telecom unit Arcor said it would cut call charges by more than half.
The German market is seen as vulnerable thanks to the current bout of shakiness in the dollar.
Smaller European markets were becalmed with little to guide stocks in Switzerland and Amsterdam.
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