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Bourses stage late revival
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May 10, 1999: 12:50 p.m. ET
European markets benefit from Kosovo hopes, U.S. market rise
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LONDON (CNNfn) - A late rally on hopes the Kosovo conflict might be approaching some sort of peaceful resolution boosted European stock markets Monday, after a session spent almost entirely in the red.
Bourses opened in a positive frame of mind, with a couple of big corporate deals in the spotlight. In a day of thin volume however, investors stepped out of the fray by mid-morning as they pondered the political impact of misguided NATO bombs landing on the Chinese embassy in Belgrade.
The late revival came about as unconfirmed reports appeared of Serbian troops being pulled back from some front line areas. U.S. markets moved higher too, further boosting the mood in Europe.
London's FTSE 100 ended the session at 6,348.8, for a decline of a meager 7.2 points. In Frankfurt, the Xetra Dax closed just 15.49 points lower at 5,261.01, well off its lows for the day. In Paris, the CAC 40 staged a strong recovery to finish the day at 4,347.15, up 1.3 percent, or 57.59 points. Zurich's SMI traded in a narrow range all session, closing at 7,225.6, just 10.2 points higher.
London trading was dominated by HSBC's agreement to buy Republic New York Corp. (RNB) for $10.3 billion. HSBC (HSBA) stock dipped more than 3 percent to 2,136 pence. Other financial stocks closed higher, led by investment bank Schroders (SDR). Investors reappraised the bank's potential worth in light of the value attributed to Republic. Schroders stock jumped more than 5 percent to 570 pence, beating a near 4 percent rise at Royal Bank of Scotland (RBOS).
Talk that Deutsche Telekom (FDTE) is close to buying Cable & Wireless's cellular unit One2One boosted C&W (CW.) stock almost 3 percent to 847 pence. Rival cellular operator Orange (ORA) clung to the coattails of the deal, rising 3.5 percent to 799 pence.
In Frankfurt, Deutsche gained slightly to 36.00 euros. The broad-based decline that had hurt the German market all session eased up in the final minutes of trading.
Chemicals maker Hoechst (FHOE) gained 2 percent on renewed hope for its troubled merger with France's Rhone-Poulenc (PRPP).
French stocks did even better. Oil company Elf Aquitaine (PAQ) gained 2 percent, as growing rumors of a deal between Chevron (CHV) and Texaco (TX) highlighted Elf's single status. Domestic rival Total (PFP) rose 2.3 percent to 122.7 euros.
Norway's Norsk Hydro's $2.2 billion unsolicited offer for domestic rival Saga Petroleum further highlighted the potential for corporate activity in the oil sector. Saga stock soared by almost a third to 111 Norwegian kroner. Norsk stock rose 1 percent to 346 kroner.
French food processor Danone (PBN) rose almost 3 percent after denying reports it would link its Kronenbourg brewing unit with London-listed South African Breweries.
Swiss stocks were slightly higher in Zurich, although investors had to endure a day of dull trading with little by way of important corporate news. 
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