|
FTSE notches up new record
|
 |
April 7, 1999: 12:56 p.m. ET
Buoyed by rate cut hopes, London shares hit new peak; others mostly firm
|
LONDON (CNNfn) - London stocks notched up another record-breaking run Wednesday as investors mentally fast-forwarded to Thursday, when both the Bank of England and the European Central Bank are expected to unleash back-to-back interest rate cuts.
Elsewhere, German and French shares ended on higher ground despite paring early gains toward the close as an early rally on Wall Street petered out.
Buoyed by a lightning surge in bank stocks, which accounted for 90 percent of the point gain in the main index, the benchmark FTSE 100 advanced 57.9 points, or 0.9 percent, to 6,473.2, its eighth straight gain. But the index finished 20 points below its intraday record of 6,496.1.
The broader FTSE barometer -- the FT All Share index -- rose 0.85 percent to its own record finish at 2,963.26.
Fueled by interest rate hopes, Blue chips on Germany's electronically traded Xetra Dax closed up 0.1 percent, or 4.98 points, at 5,027.25. But traders said the market may have been pressured by the military conflict in Yugoslavia, where NATO Tuesday swiftly rejected a Serbian cease fire offer that the alliance contended fell far short of its conditions.
Retailers Karstadt (FKAR) and Metro (FMEO) posted sharp gains ahead of anticipated rate cuts that could free up extra money for consumer spending. Karstadt stock spurted more than 5 percent to 352.50 euros, while Metro shares added more than 2 percent to 61.30.
Paris shares on the CAC 40 skidded back from gains of more than 1 percent to close 0.32 percent higher at 4,318.04. Earlier in the session, the index came within a whisker of its 1999 peak of 4,354.29, set on Feb. 1.
Swiss stocks closed 0.65 point higher, at 7,216.8, led by sharp strides in banking giant UBS.
Traders gave Reuters different outlooks on whether the European Central bank will trim rates pressured the Paris index. Some said the euro's weakness could be grist for those arguing against an immediate cut.
Banking stocks racked up some of the most impressive gains: Barclays (BARC) rose more than 4 percent to 1,942 pence, while HSBC Holdings climbed 4.76 percent to 2198 and Bank of Scotland (BSCT) jumped more than one percent to 889 pence.
Talk of further consolidation in the telecom sector following Mannesmann Arcor's (FMMN) Easter weekend buyout of German rival Otelo for 2.25 billion marks ($1.24 billion) also drove market action. But in Frankfurt, Mannesmann slipped 1.35 euros to 128 after WestLB Panmure cut its rating for the group.
Shares of banking behemoth Banque Nationale de Paris (PBNP) slipped 3.41 percent, to 76.50 euros after the rejection by the boards of both Paribas (PPM) and Société Générale (PGLE) of BNP's (PBNP) $37 billion twin takeover bid, deemed unfriendly by the target banks.
SocGen stock shed 2.33 percent to 176.2, while Paribas (PPM) gave up 1.40 euros to 102.00.
In Frankfurt, Mobilcom (FMOB) shares were weaker after the German telecommunications company said it plans further acquisitions after being beaten by rival Mannesmann (FMMN) in a takeover bid for Otelo, a long-distance firm. Mobilcom stock dipped 2 euros to 215.
Telecom came under the spotlight again, after Hong Kong's SmarTone Telecommunications confirmed that British Telecommunications (BT.A) plans to acquire a 20 percent stake for about $390 million. BT stock was unchanged at 1,069 pence.
In an escalating banana-trade dispute between the U.S. and Europe, the World Trade Organization ruled in Washington's favor, clearing the way for limited sanctions. The WTO handed the U.S. a small victory by giving the green light to the Americans to impose nearly $191.4 million in punitive tariffs on a range of EU imports.
Shares of Anglo-Dutch publisher Reed Elsevier (REED) fell sharply in London Wednesday as investors expressed dismay with the firm's failure to find a new CEO after eight months of searching. Reed shares fell 2.47 percent to 547.4 euros.
Investors feared the company's pool of top recruits may be shrinking after Reed announced late Tuesday it had failed to strike a deal with a top candidate, and after the resignation of two directors. 
-- from staff and wire reports
|
|
|
|
|
 |
|
