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Europe makes mixed start
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November 12, 1999: 5:15 a.m. ET
Bourses search for direction in quiet session; technical problems close Zurich
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LONDON (CNNfn) - European markets were directionless in morning trade Friday as investors searched for an impetus in a quiet session for corporate news.
London's FTSE 100 was the biggest gainer, hanging on to opening gains of some 35 points to trade at 6,586.7, a gain of 0.5 percent.
The CAC 40 in Paris made little headway as it stood 18 points higher at 5,150.12, continuing to probe uncharted territory.
In Frankfurt, the Xetra Dax was more volatile as it reversed into the red to trade 7 points lower at 5,795.66.
Zurich was closed Friday after the stock exchange said it had failed to fix a technical problem overnight that had hit the previous session.
With a quiet session in prospect in Europe, traders looked for guidance from the U.S. futures market after the mixed close on Wall Street Thursday.
The U.S. interest rate meeting next week caused jitters on Wall Street in Thursday's session. The Dow Jones industrial average closed just inside the minus column, while the tech-heavy Nasdaq composite surged to its ninth record close in 10 sessions.
Wall Street looked set for a mildly higher open Friday, with S&P 500 futures quoted 4 points higher on the Globex trading system at 1,391.90. London brokers calculated fair value, which takes into account the variable effect of dividend payments and interest costs, at 1,387.83.
Trading is expected to remain subdued ahead of U.S. retail sales figures due out later Friday. A 2.7 percent year-on-year fall in German retail sales data for September knocked the euro as it fell below its $1.0380 support level as it stood around $1.0372.
Telecom stocks continued to dominate in Europe amid continued merger speculation.
Vodafone AirTouch (VOD) was one of the biggest movers in London as it fell 3.4 percent amid uncertainty over its rumored $100 billion bid for Germany's Mannesmann (FMMN). Its purported German target soared 4.1 percent in Frankfurt.
Telecom network operator Energis (EGS) jumped 4.8 percent. The company made its second deal in a week Thursday, buying a Dutch operator in a bid to increase its continental European exposure.
Oil heavyweight BP Amoco (BPA) stood 1.1 percent higher after it reached a deal Thursday with Californian authorities over its proposed takeover of Atlantic Richfield.
British Aerospace (BA-) fell 2 percent after a strong rally Thursday, when the defense and aerospace company said it had been told by the Pentagon that it would be considered as a U.S. contractor in any future deals.
In Frankfurt, positive banking stocks underpinned losses from two other market heavyweights. HypoVereinsbank (FHTM) led the sector with a 2.6 percent jump.
Deutsche Telekom (FDBK) fell 1.5 percent amid worries about Vodafone's move into Germany. DaimlerChrysler (FDCX) slipped 1.6 percent after a report that it was restructuring its rail unit in an effort to stem heavy losses.
In Madrid Repsol and fellow energy provider Iberdrola were suspended, pending an announcement. Repsol said Thursday it would consider linking up with Spain's second largest power generator Iberdrola.
-- from staff and wire reports
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