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Mixed day for bourses
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August 4, 1999: 12:53 p.m. ET
London, Paris rack up modest losses; Frankfurt hangs on to post slim gain
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LONDON (CNNfn) - European stock markets finished mixed Wednesday after drifting for most of the session and failing to glean any sentiment from a similarly mixed picture on Wall Street.
A mix of earnings, analysts' recommendations and bargain hunting in Europe led to large swings across-the-board as investors proved difficult to budge toward the buy or sell side and a small number of trades effectively dictated the market.
London's FTSE 100 fell back after the U.S. open to close down 15 points at 6,235.6, a loss of 0.24 percent, after climbing as high as 6,282.
Frankfurt's Xetra Dax moved in and out of the black for most of the day but held on to close up 11.69 points at 5,119.37, 50 points above its floor for the day and 30 points below its peak
The CAC 40 in Paris remained flat in late afternoon trade and closed down 28.55 points, or 0.66 percent, at 4,326.20 after only just making it into the black in morning trading.
Smaller European markets were also mixed, with the SMI in Zurich off 0.31 percent, and Amsterdam's AEX and the Ibex in Madrid the only other bourses to post gains.
While equities drifted, the euro was bolstered by the release of more data pointing to recovery in the European economy. Consumer confidence in France reached near-record levels in July while business and retail surveys in Britain -- which is outside the 11-member euro-zone -- also posted sharp gains.
The releases pushed the euro above the $1.08 level for the first time in three months.
The $11.6 billion acquisition of Union Carbide by Dow Chemical provided European chemical stocks with a much-needed lift -- the sector was up around 1.5 percent across Europe.
However, while the deal powered the Dow Jones industrial average to a three-figure gain, it was insufficient to entice European investors to the broader market.
In London, data showing the fastest growth in retail sales for 18 months in July helped that sector to outperform the FTSE. Supermarket operator Tesco (TSCO) led the gainers with a 4.4 percent advance, sparked by a Deutsche Bank upgrade of the firm to a "strong buy."
Rival Sainsburys (SBRY) rose 3.87 percent.
Cable operator Telewest (TWT) lost most of a 3.5 percent advance on a report that it plans to provide high-speed Internet access to homes, but still closed 0.75 percent ahead.
Among U.K. firms reporting financial results Wednesday, Standard Chartered (STAN) narrowed its early losses but was still down 1.88 percent after reporting a 35 percent drop in pre-tax profits. It was the biggest loser among financial issues.
The U.K.'s No. 3 cellular phone service provider Orange (ORA) lost 0.4 percent after an early rise when it narrowed its losses thanks to a 52 percent increase in sales.
Other telecom stocks continued a sell-off that began Tuesday. British Telecommunications (BT.A) was again the biggest loser among FTSE issues, down 3.88 percent. Vodafone AirTouch (VOD) was down 3.74 percent.
Among others reporting results Wednesday, engineering group GKN (GKN) closed up 0.73 percent as it delivered first-half profits of 251 million pounds, at the top end of expectations.
British Steel (BS) gained 2.40 percent after Dutch merger partner Hoogovens reported a drop in first-half profits, in line with expectations. Hoogovens added more than 4 percent in Amsterdam.
Dax reacts
In Germany, BASF (FBSA) enjoyed the chemical reaction to the Dow-Union Carbide deal with a 5.3 percent rise to lead the Dax gainers.
Hoechst (FHOE), the drug and chemical company, didn't fare as well -- posting a modest decline after it reported a 63 percent fall in second-quarter operating profit to 128 million euros ($136 million).
Viag (FVIA) was slightly lower after the diversified utility group reported first-half earnings broadly in line with expectations. Group pre-tax profits fell almost 17 percent to 1.8 billion marks ($1 billion).
Mannesmann {FSE:FMMW] was down 3.7 percent ahead of the telecom operator's results Thursday.
Deutsche Bank {FSE:FDTK] added 3.4 percent after Goldman Sachs upgraded the stock. BMW (FBMW) also added 3.4 percent after reporting a 19.4 percent jump in U.S. sales in July.
Paris was evenly split between gainers and decliners as bargain hunters moved in to capitalize on recent losses.
Dexia (PDEX), the municipal bank, advanced 4.2 percent to head the CAC gainers as it benefited from re-allocation of financial stocks in investor portfolios.
Hotel operator Accor (PAC) checked in a shade over 3 percent ahead, and Sodexho Alliance (PSW), a contract caterer, whetted the appetite with a 3.7 percent advance.
Defense contractor Thomson-CSF (PHO) gained 1.48 percent.
Tech stocks lost out in the wake of the Nasdaq's erratic form, with Schneider Electronics (PSU) down 2.46 percent. Telecom stocks were also hard hit, with France Telecom (PFTE) off 1.7 percent and Equant (PEQU) down 4.1 percent..
-- from staff and wire reports
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