Bourses make early headway
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December 16, 1998: 4:59 a.m. ET
European markets climb higher, piggy-backing on the Dow
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LONDON (CNNfn) - Bourses retained their recent habit of opening in a positive frame-of-mind Wednesday, boosted by a late rally on Wall Street. Europe's principal stock indexes were up to 2 percent higher in thin trading.
In London the FTSE 100 rose 0.5 percent to 5,587.6, while Frankfurt's Xetra DAX jumped 1.8 percent to 4,649.19.
In Switzerland the SMI index gained 81.5 points to 6,849.7, and France's CAC 40 jumped 0.8 percent to 3,702.38.
Significant action in London was limited to second-tier companies. Investors warmed to coal mining outfit RJB Mining (RJB). Shares in the troubled group surged 10 percent to 74 pence after the company announced it had secured a major supply deal.
Among blue-chips Diageo (DGE) recovered 3 percent to 630 pence after recent weakness, and publisher Reed (REED) jumped almost 6 percent to 467 pence.
In Paris oil stocks Elf Aquitaine (PAQ) and Total (PFP) both gained about 2 percent on speculation of military action against Iraq.
In Frankfurt investors were awaiting more details on Deutsche Bank's (FDBK) plans to spin off its massive industrial portfolio. A press conference was planned for Wednesday morning.
Viag (FVIA) continued its recent recovery, gaining 20 marks to 985 marks.
In Zurich takeover speculation continued to swirl around insurer Baloise, although the shares eased 20 francs to 1,440 francs.
Broad gains were spread across the rest of the blue-chips.
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