|
Bourses suffer rate jitters
|
 |
April 8, 1999: 5:45 a.m. ET
Markets soften as nerves take hold ahead of key interest rate decisions
|
LONDON (CNNfn) - European markets struggled to keep their composure Thursday ahead of two key interest rate decisions. Early gains on most bourses melted due to some gentle selling pressure.
The FTSE 100 fluctuated after a weak start, rising briefly, before nosing back into the red: by mid-morning the benchmark index was off 0.14 percent, or 8.8 points, at 6,464.4.
Germany's electronically-traded Xetra Dax edged down, slipping 0.24 percent, or 12.11 points, to 5015.14. Swiss blue chips were up half a percentage point. The SMI index added 37.1 points to 7,253.9.
In Paris the CAC 40 trimmed early gains, inching down 1.22 points to 4,316.82 ahead of the European Central Bank rate decision, expected Thursday evening. Shares of beauty products maker L'Oréal (POR) were up 2.2 percent at 626 euros after the company reported a rise in first-quarter revenue.
European market sentiment is anticipating a quarter point cut from both the Bank of England, which hands down its decision at mid-session, and the European Central Bank. But strong economic data for the service sector released Wednesday in England could temper the argument for cuts by the BoE.
European morale got a boost after the Dow Jones industrial average hit a new high of 10,085.31, up 121.82 points Wednesday. London also hit a new closing peak Wednesday of 6,473.2.
Volkswagen (FVOW), Europe's largest automaker, plans to raise 18 billion marks ($9.9 billion) in fresh capital to fund acquisitions and alliances, according to an unconfirmed report. In Frankfurt, the carmaker's shares gave up some early gains to trade down 0.60 euros at 61.20 euros. The group refused to comment on the report in the German business daily Handelsblatt, according to Reuters.
DaimlerChrysler slipped 0.15 euros to 83.75, while BMW (FBMW)stock advanced 7 euros to 620.
French luxury goods group LVMH (PMC) may raise its offer for Italian fashion house Gucci to as much as $90 per share from the current $81, a French newspaper reported Thursday. LVMH shares shed 0.22 percent to 227.1 euros in Paris.
In London cable operator Telewest (TWT) succumbed to a bout of weakness following Wednesday's 5.7 percent run-up. The rise was spurred by talk of a possible deal with Cable & Wireless (CW.). Telewest shares shed 3.84 percent to 308 pence Thursday.
Cable & Wireless stock retreated 0.31 percent to 795 pence.
On the pharmaceutical front, shares of British drug giant Glaxo Wellcome (GLXO) were off just over 1 percent at 2,156 pence. The U.S. Food and Drug Administration approved a three-month extension for Glaxo's new influenza drug Wednesday.
-- from staff and wire reports
|
|
|
|
|
 |
|
