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Bourses aim for records
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January 6, 1999: 1:08 p.m. ET
European markets rocket higher, boosted by banks, telecom stocks
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LONDON (CNNfn) - The bulls were back in force in Europe Wednesday, driving the major bourses higher, toward all-time peaks.
Bolstered by a record-setting showing in early New York trade European investors went on a buying spree, sending frothy markets up higher still.
London's FTSE 100 rocketed more than 3 percent higher to close at 6,148.8, up 190 points, not far short of July's all-time peak of 6,183.7, and well beyond supposed technical resistance at the 6,000 level. Telecom and financial stocks were the chief beneficiaries of the latest rally.
In Germany the Frankfurt market enjoyed an even better day. The Xetra Dax index roared almost 3.5 percent, 180 points, to close at 5,442.90.
In Paris the CAC 40 rose 2 percent, up 94 points, to 4,294.82, while Switzerland's SMI gained 123 points to 7,668.8.
Investors suddenly rediscovered a liking for financial stocks, a trend noticeable right across the continent.
In London the blue-chip index breached the 6,000 level for the first time since July, thanks in part to a 14 percent surge at Standard Chartered (STAN) and similarly massive rises at Barclays (BARC), Norwich Union (LSE:NU) and HSBC (HSBA).
Insurer Legal & General (LGEN) soared almost 10 percent to 827 pence, and fund manager Amvescap (AVZ) rose 9 percent to 524 pence.
The telecom stocks, hottest sector on the market over the past 12 months, refused to be left behind. Cellular operator Orange (ORA) boasted its second double-digit gain of the week, perennial favorite Colt Telecom (CTM) shot up again and even Cable & Wireless (LSE:CW) rose strongly to 843 pence.
Germany's Xetra Dax is still some way from its lifetime high of 6,224.52, but it could surpass that total within a week if it keeps rising at Wednesday's rate.
Banks stocks were again to the fore, with index heavyweight Deutsche Bank (FDBK) gaining 5 percent to 56.5 euros. Auto shares were also in the driving seat, with BMW (FBMW) revving 6 percent ahead, and DaimlerChrysler gaining 7 percent to 92.5 euros.
The Paris market closed within a whisker of the 5,000 level, some 100 points shy of its all-time peak. Consolidation hopes among the banks drove BNP (PBNP) up 9 percent to 81.5 euros, and Société Générale (PGLE) up 7 percent to 169 euros.
LVMH (PMC) sparked speculation it might buy Italian fashion outfit Gucci, sending the French group's shares up 7 percent to 200 euros.
The Zurich market has moved in more sedate fashion than some of its neighbors, but has still managed a 500 point rise in the three trading sessions so far this year.
Pharmaceutical group Roche jumped 320 francs to 17,910 francs, and banks CS Group and UBS were higher.
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