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Bourses in gentle decline
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April 15, 1999: 5:38 a.m. ET
European markets dip in early trade; ECB report expected
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LONDON (CNNfn) - Mixed corporate news and the expected release of a crucial European Central bank report pulled back European stock markets Thursday, despite a third straight record close for the Dow Jones industrial average.
London's FTSE 100 dipped 12 points to 6,480.8, and the CAC 40 in Paris slipped 14 points or 0.36 percent to 4,333.6.
Germany's Xetra Dax fell 11.6 points to 5,175.11. The SMI index in Zurich saw the sharpest fall, with a 0.91 percent decline 7,310.4.
The ECB report is expected to be critical of European governments' attempts to cut their budget deficits, and push through structural reforms.
In London, engineering group GKN (GKN) dipped 4 percent to 505 pence after a downgrade by Merrill Lynch analysts. Pharmaceutical shares also fell back with SmithKline Beecham (SKB) down 2.36 percent to 868 pence after poor earnings from an Indian subsidiary.
Drinks group Allied Domecq (ALLD) was the largest riser among London blue chips, climbing 4 percent to 505 pence after reaching a deal to sell its stake in Spanish bakery company Panrico/Donuts.
Auto maker Peugeot (PUG) was among the stocks in focus in Paris after the company said it would not rush to find a merger partner. Peugeot shares gained more than 2 percent.
Cable giant Canal Plus (PAN) jumped 1.2 percent to 289.8 euros after its largest shareholder Vivendi (PEX) said it would retain its holding and back future investment plans.
LVMH (PMC) shares fell 1.53 percent to 231.2 euros as its management prepared for another round of talks with Gucci after the rejection of the luxury goods group's latest takeover offer Monday.
Deutsche Telekom (FDTE) was the main drag on Frankfurt's premier index Thursday, after the company reported flat first-quarter profit and said it planned to raise more funds through a capital increase. The shares fell over 4 percent before recovering to stand just 0.9 percent lower at 40.49 euros.
Mannesmann (FMMN), the country's second-largest telecom player, was down 2.02 percent at 124.1 euros after announcing that 1999 profit would be flat.
Among the gainers, Viag (FVIA) climbed 3 percent to 469 after the conglomerate announced plans to sell its 30 percent stake in Kuehne & Nagel back to the transport group.
BMW (FBMW) shares rose 3.5 to 659.3 euros.
Swisscom was among the losers in Zurich after the Swiss government announced an investigation into the telecom firm's accounts for 1998. The stock slipped 2 francs to 554 francs.
-- from staff and wire reports
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