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Bourses belong to the bulls
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January 8, 1999: 5:52 a.m. ET
European markets recover confidence, London hits new high
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LONDON (CNNfn) - After only one day away, the bulls returned to Europe early Friday, although the enthusiasm from earlier in the week has been toned down.
A late recovery in New York outweighed another overnight decline in Tokyo, boosting European investors' frame of mind.
In London the FTSE 100 headed 1 percent higher to 6,171.5 after briefly breaking through its all-time high of 6,183.7.
Frankfurt's Xetra Dax jumped 94 points to 5,439.61, France's CAC 40 rose 1 percent to 4,278.58. In Zurich the SMI gained 100 points to 7,650.6.
U.K. investors just couldn't steer clear of the hot telecommunications sector for more than 24 hours. Colt Telecom (CTM) rose 3 percent to 1,097 pence, cellular operator Orange (ORA) jumped 4 percent to 930 pence and cable group Telewest (TWT) gained more than 3 percent to 212 pence.
Among second-tier companies, building materials group RMC (RMC) warned that 1998 profits would be below expectations, sending its shares tumbling 8 percent to 694 pence.
Frankfurt's hot stock was conglomerate Mannesmann (FMMW). It jumped more than 3 percent to 120 euros after unveiling preliminary operating earnings growth of 50 percent.
Software supplier SAP (FSAP3) continued its recent recovery. The shares gained a further 4 percent to 361.5 euros.
SAP's Dutch rival Baan continued its recovery, gaining 15 percent to 12.35 euros in Amsterdam.
Dresdner Bank (FDRB) led the sector higher, rising almost 5 percent to 41.9 euros. Insurer Munich Re (FMUV3) jumped 3 percent, and Allianz (FALV) rose a similar amount.
A recovery in auto-related stocks dominated early trading in Paris. Renault (PRNO) recovered 4 percent to 43 euros, making up for Thursday's fall. Components supplier Valéo (PFR) jumped 5 percent.
Financials in Zurich moved ahead, led by gains at UBS, CS Group and insurer Baloise.
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