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Bourses lose Dow bounce
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April 14, 1999: 1:01 p.m. ET
Europe's markets end mostly in the red; Frankfurt pressured by DaimlerChrysler
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LONDON (CNNfn) - After wriggling in the red throughout the day, Europe's major markets closed mostly lower Wednesday after a brief Dow-induced bounce failed to last long enough to keep the momentum going. London's leading index slipped 0.3 percent as traders paused from a record-breaking run-up.
The Dow Jones industrial average shot up 10 points to 10,405 within minutes of its start -- above Tuesday's record high --before edging back down. The euro, hit by Kosovo-related anxiety, slipped below $1.08 at one point in European currency trade.
With the Kosovo crisis looming large in the backdrop, shares on the FTSE 100 edged down 19.5 points by the close to 6,493.6, well below an intraday high of 6,539.9 hit earlier in the session.
The index was weighed down by a mild bout of selling in the drug sector, where Glaxo (GLXO) fell 1.33 percent.
Negative news from two index heavyweights prevented Germany's electronically-traded Xetra Dax from building a head of steam Wednesday. The leading index finished down 0.74 percent, or 38.46 points, at 5,186.76 points, pressured by its most heavily traded stock DaimlerChrylser.
The automaker slid 1.85 percent to end at 90.25 euros in Frankfurt after the European Commission accused the company of breaking antitrust rules. The EU investigation could result in the imposition of a stiff fine against DaimlerChrysler.
DaimlerChrysler, for its part, quickly denied the allegations, insisting it had never tried to seal off national markets within the European economic zone, as the EU alleged.
Mannesmann (FMMN) spearheaded the Dax decliners, plunging nearly 6 percent after the company unveiled disappointing first-quarter results. Mannesmann said first-quarter revenue rose almost 4 percent, to 4.6 billion euros, boosted by a 32 percent growth in its telecom business.
Zurich's SMI ended a turbulent session up 0.16 percent, or 12 points, at 7,378.2. The star performer of the day was a small technology firm called Distefora, which skyrocketed 73 percent, or 84 francs, to 199 after revealing it had purchased a premier German Internet service provider. The company also issued a rosy profit growth outlook.
In Paris, the CAC 40 index slipped 0.42 percent to 4,349.26 a day after the index streaked to its second consecutive closing record of 1999.
Alleviating some of the pressure on the French index, shares of Danone (PBN) vaulted nearly 6 percent, to 248.3 euros, as investors applauded a 3.9 rise in first-quarter sales at the food group.
The Kosovo crisis continued to distract investors. Many markets were briefly broadsided Tuesday by reports, denied by Belgrade, that Serbian forces had crossed the Albanian border. The movement underscored the sensitivity of traders to any perceived escalation of the conflict.
In London, shares in Imperial Chemical Industries, or ICI, surged more than 8 percent amid speculation that it's on the brink of selling its bulk chemicals business to Utah-based Huntsman.
Barclays (BARC) also was in the spotlight again Wednesday, a day after its new chief executive, Michael O'Neill, decided to quit the post on health grounds. There is talk Barclays may be a takeover target of Royal Bank of Scotland (RBOS), following a British newspaper report that the Scottish bank is preparing a merger bid.
Barclays ended up 1.35 percent at 1,944 pence; Royal Bank of Scotland climbed 1.40 percent to 1,446.
Elsewhere in the financial sector, Halifax (HFX), Britain's largest mortgage company, said Wednesday a previously announced integration of its real estate agency operations into its banking network will save 50 million pounds ($81 million) annually.
Halifax shares shed nearly 1 percent to 854. 
-- from staff and wire reports
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