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Europe moves higher
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November 24, 1999: 5:21 a.m. ET
Paris rallies 1 percent with other markets following amid lack of corporate news
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LONDON (CNNfn) - Europe's main bourses moved higher in late morning trade Wednesday, with Paris posting the biggest gains. The markets lacked clear direction, with little corporate activity or economic data to inspire traders.
In London, the FTSE 100 was flat at 6,534.50 following strong gains Tuesday.
Frankfurt's Xetra Dax was up 25 points at 5,839.18.
French blue chips continued to add to their bright open, as the CAC 40 gained nearly 1 percent, or 50 points, to 5,202.43. Pay-TV giant Canal Plus (PAN) led the way, surging almost 10 percent, more than compensating for its losses Tuesday. The shares were twice suspended limit up in Paris. Traders said the successful debut of OpenTV on Nasdaq Tuesday was pushing up shares of Canal Plus, which has a similar business. OpenTV provides software which runs interactive applications on digital television.
Zurich's SMI floundered in negative territory as it stood 21 points lower at 7,258.7.
The Dow Jones industrial average Tuesday fell almost 100 points, while the tech-heavy Nasdaq composite fell 1.2 percent as profit-taking set in ahead of the Thanksgiving national holiday in the United States Thursday.
The outlook was brighter, however, as U.S. stocks looked set to open higher Wednesday. S&P 500 futures were quoted unchanged on the Globex trading system at 1,412. London brokers estimate fair value, which takes into account the variable effect of dividend payments and interest costs, at 1,408.51.
In the currency markets, the euro traded around $1.0231, just above its four-month low against the dollar hit in early European trade Wednesday as traders took a more negative view of Europe's economic prospects. The euro fell as low as $1.0220, within 1.5 cents of the $1.0104 lifetime low set in July.
Corporate activity is likely to be limited throughout the session. In London, hotel and media group Granada (GAA) halved its earlier gains to trade 1.4 percent higher after reporting a 14 percent rise in annual pretax profits to 835 million pounds ($1.36 billion), before one-time items. The earnings were largely in line with expectations.
The company also said it was looking for a big acquisition in Europe or the United States for its hotel and catering business and could then opt to split its core operations in two.
Media rival Carlton Communicatioins (CCM) rose 2 percent, while BSkyB (BSY) fell 2.2 percent in early trade.
Engineering group Invensys (ISYS) put out its first set of profits since its creation in February by the merger of Siebe and BTR. First-half operating profit was up 9 percent at 516 million pounds ($835 million), at the top end of expectations. The shares rose 2 percent.
South African Breweries (SAB) slumped 3.5 percent after it unveiled a 2 percent rise in first-half earnings.
In Frankfurt, most of the attention was focused outside the blue- chip sector on Germany's second-largest construction group Philipp Holzmann (FHOZ). The failing group might yet win a reprieve after the German government said it had summoned creditor banks to a meeting in another last-ditch effort to reach a compromise. The shares, which plunged 84 percent Tuesday, were up 60 percent in early trade.
Chemical maker Henkel (FHEN) was up 2 percent, after similar gains Tuesday.
In Paris, other gainers paled in relation to Canal Plus. Banking group CCF (PCCF) rose 1.2 percent after it unveiled a 40 percent jump in nine-month net earnings.
Engineer Alstom (PALS) was up 3.9 percent, while building group Lafarge (PLG) rose 2.6 percent and tiremaker Michelin (PML) was up 2 percent.
In Zurich, the world's largest food producer Nestle was little changed after it said 10 month sales rose 2.2 percent.
-- from staff and wire reports
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