|
London soars with Wall St.
|
 |
August 23, 1999: 10:22 a.m. ET
Financial stocks push bourses higher as investors await U.S. rate decision
|
LONDON (CNNfn) - The firm opening on Wall Street drove European shares higher in afternoon trading Monday as a push into banking and drug stocks sent London up more than 1.5 percent while other bourses made strong gains.
The initial 60-point gain in the Dow Jones industrial average added momentum to European stocks already buoyed by a morning rally. London's FTSE 100 attracted the most attention as it climbed again after a midday pause to reach 6,291.40 following the New York open, a gain of 111 points or 1.709 percent.
The Xetra Dax in Frankfurt was ahead by 1 percent, or 53 points, at 5,306.86 as financial stocks were lifted by a fresh round of alliance talks.
The CAC 40 in Paris was less buoyant but still moved ahead 27 points or 0.6 percent at 4,498.73. Smaller markets also gained with the SMI in Zurich up 0.77 percent and the AEX in Amsterdam up more than 1.5 percent.
The FTSE Eurotop 300, a broader index of the largest pan-European shares, gained 1.3 percent at 1,307.54. Banking, insurance and drug stocks were all up more than 2 percent, with only the mining sub-index losing ground as investors booked profits.
London shares gained across the board despite light corporate news, with investors betting on the U.S. Federal Reserve to take a neutral monetary stance after its expected quarter-point hike in interest rates Tuesday.
Standard Chartered (STAN) led the banks higher with a leap of 6.5 percent while Lloyds (LLOY) added 3.6 percent and Barclays (BARC) gained almost 4 percent.
Drug group Glaxo Wellcome (GLXO) added 3.2 percent amid reports that it will receive fast-track U.S. regulatory approval for its bowel treatment Lotronex. Rival SmithKline Beecham (SB) jumped 4.2 percent as sector sentiment improved.
Drinks group Allied Domecq (ALLD) rose 2.8 percent despite issuing a profit warning as shareholders approved the $2.7 billion sale of its pub unit to Punch Taverns.
In Frankfurt, Deutsche Bank (FDBK) rose 4.7 percent and Dresdner Bank (FDRB) added 4.5 percent after the banks confirmed talks which could lead to an alliance between their retail units.
Deutsche Telekom (FDTE) was off 1.5 percent after a report that it may cut long-distance tariffs again.
Paris was more evenly split between gainers and decliners, with Suez Lyonnais des Eaux (PLY) down 1.6 percent following its $1.8 billion purchase of the shares in U.S.-based United Water Services (UWS) that it does not already own.
The thin volumes pulled back many shares in profit taking, but hotel group Accor (PAC) led the gainers with a 2.2 percent advance.
-- from staff and wire reports
|
|
|
|
|
 |
|
