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Europe mixed, London up
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July 19, 2000: 12:28 p.m. ET
'Old economy' gains offset by weakness in techs and telecoms
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LONDON (CNNfn) - Europe's main markets were mixed at the close of trade Wednesday, with "old economy" energy and auto stocks heading higher while technology stocks sank.
Crude oil prices climbed sharply in New York Tuesday after OPEC President Ali Rodriguez said it will not boost production at the end of the month because prices have slipped below the upper range of its price target. Brent crude for September delivery traded at $29.10, down 22 cents from the previous day.
London's benchmark FTSE 100 index rose 0.2 percent to 6,463.5, led by oil companies BP Amoco (BPA), up 2.8 percent, and Shell Transport and Trading (SHEL), which rose 0.6 percent.
The CAC 40 index in Paris slipped 0.2 percent to 6,500.05, with heavyweight France Telecom and data network operator Equant among the top decliners.
Frankfurt's Xetra Dax index was down 40.34 points, 0.5 percent at 7,366.57 with Europe's leading software firm SAP (FSAP) dropping 2.8 percent. Zurich's SMI index rose 0.5 percent.
The FTSE Eurotop 300 index, a basket of major companies from across the region, slipped 0.2 percent to 1,642.76. The information technology sector fell 1.8 percent while the auto sub index rose 2.3 percent.
In the U.S., stock markets headed lower. The Nasdaq composite fell 1.7 percent while the Dow Jones industrial average slipped 0.2 percent.
In the currency market, the euro fell to 92.38 U.S. cents from 92.50 cents in late New York trading Tuesday. The European currency weakened after a survey by the Ifo economic institute of the German business climate was less upbeat than forecast, accelerating the currency's recent erosion.
Greenspan comments awaited
International economist Michael Hume of Lehman Brothers said investors on Wall Street and in Europe were looking ahead to comments Thursday by U.S. Federal Reserve Chairman Alan Greenspan for signs as to whether interest rates will rise as the central bank chief tries to keep the U.S. economy from overheating. The Fed has raised interest rates six times since last June.
"Alan Greenspan has reason to be hawkish," Hume said, citing several recent U.S. reports that show the economy still is going strong. "He will want to put a warning shot across the bow of markets" to indicate that rates still could rise, Hume said. Higher interest rates raise businesses' costs by increasing the cost of borrowing.
In London, freight transport company Ocean Group (OGP) rose 3.6 percent and cruise ship operator Peninsular and Oriental Steam Navigation Co. (PO-) advanced 2 percent.
Defense and aerospace firm BAE Systems (BA-) climbed 2.3 percent after agreeing to sell 10 regional jets to Europe's biggest airline British Airways (BAY).
Vodafone AirTouch (VOD), the index's most heavily weighted stock, rose 2.6 percent on a report in the Financial Times that the German mobile phone license auction will not raise as much money for the government as had been expected previously. Vodafone paid $6.9 billion for its U.K. license and could pay less for a German license.
Other telecom stocks slumped. Colt Telecom (CLT) dropped almost 4 percent and British Telecom (BT-A) lost 1.3 percent.
France Telecom (PFTE) fell 1.9 percent in Paris. Its Internet access unit Wanadoo (PDOO) rose 10.7 percent on its debut in Paris. France Telecom sold Wanadoo shares in an initial public offering at  19 per share.
Internet service provider Freeserve (FRE) sank 8.5 percent in London after CSFB, the company's stockbroker, more than doubled its forecast for Freeserve's loss in 2001, saying additional investment would outweigh higher revenue.
Anglo-Norwegian health group Nycomed Amersham (NAM) fell 3.9 percent. The company is likely to announce the flotation of no more than 10 percent of its jointly owned life sciences unit next month, industry sources and analysts said. The company declined to comment.
In France, auto parts maker Valeo (PFR) was the biggest CAC loser, down 6.6 percent even after reporting a 10 percent rise in first-half net profit, while automaker Renault (PRNO) topped the gainers board, rising 8.4 percent.
German car maker Volkswagen (FVOW) rose 2.5 percent in Frankfurt. CEO Ferdinand Piech told a German business magazine the company will post full-year 2000 net profit above the record 2.24 billion marks ($1.06 billion) reported in 1998.
DaimlerChrysler (FDXC) jumped 4.4 percent on reports its U.S. truck unit, Freightliner, is about to buy Canada's Western Star Trucks Holdings. Rival MAN (FMAN) fell 2.4 percent.
In Frankfurt, chipmaker Infineon Technology (FIFX) fell 2.1 percent, parent Siemens (FSIE) declined 2.3 percent. Computer chip maker STMicroelectronics (PSTM) rose 1.2 percent in Paris.
In Amsterdam, semiconductor equipment maker ASM Lithography dropped 1.9 percent after reporting first-half net profit of 144.4 million ($133 million), near the high end of the range of analysts' expectations. ASM said it expects profit margins to improve further in the year's second half.
Dutch carrier KPN Telecom fell 7.3 percent after saying it plans a global share issue in the fourth quarter in a move to fund European mobile phone projects and allow the Dutch state to cut its 43.5-percent stake. 
-- from staff and wire reports
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