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Bourses in upbeat mood
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March 5, 1999: 7:52 a.m. ET
Europe's markets take heart from surging Dow and Asian markets
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LONDON (CNNfn) - Europe's equity markets racked up early gains Friday, inspired by a yen-induced 5-percent surge on Japan's Nikkei index and robust strides in Hong Kong. Good news from overseas markets helped allay concerns about a brewing European trade war with the U.S. over bananas.
After the close Thursday, the European Central Bank announced that it would leave interest rates unchanged at 3 percent, a move largely anticipated by the markets.
London's FTSE 100 index of leading components was up 1 percent, or 59.5 points, at 6,160.9 as investors followed the lead of the Nikkei and Hang Seng, which soared 5 percent and 3.3 percent, respectively.
Germany's electronically-traded Xetra Dax pared some early gains but remained up 0.77 percent at 4,759.24, a 36.55-point rise.
The upbeat performance of bourses elsewhere helped dispel some of the gloom about the German economy after a recent rash of weak economic data. In the latest salvo, Germany's producer price index fell 0.5 percent month-on-month in January. The index was down 2.3 percent from the comparable period a year ago.
In Paris, the CAC 40 added more than 1 percent to 4,132.48. Investors across Europe will also keep their eyes on important U.S. employment figures due out Friday for clues as to whether the Fed may be poised to raise interest rates.
The SMI index of leading shares in Zurich got a boost from positive global sentiment, rising 0.79 percent to 7,162.9.
Investors are likely to focus Friday on UBS's decision to sell its international trade finance arm to London-listed Standard Chartered (STAN).
UBS shares added 2.50 to 464 francs; Standard stock reversed earlier gains, slipping 0.42 percent to 823 pence.
The financial sector will be in the spotlight across Europe Friday, after Dutch heavyweight ABN Amro revealed it would take an 8.7 percent stake in Italy's Banco di Roma. In Amsterdam, ABN shares gained 0.84 percent to 18.05 euros.
In Paris, Lagardère (PMMB) stock spiked 3.55 percent after a French newspaper reported the conglomerate may sell its 97 percent stake in Giraudy, an outdoor advertising firm, to Germany's Deutsche Bank (FDBK) for 1.4 billion francs ($231.7 million). Lagardère shares rose 1.18 euros at 34.38.
In Frankfurt, chemical stocks remained upbeat despite a report from the chemical employers association showing a 6.2 percent drop in German chemical production in the final quarter of 1998. Hoechst (FHOE) rose 0.85 euros to 38.70.
-- from staff and wire reports
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