|
Europe edges higher
|
 |
September 27, 2000: 12:55 p.m. ET
Techs, aerospace among broad-based rally across region's bourses
|
LONDON (CNNfn) - Europe's main markets ended higher Wednesday as key tech stocks joined in a broad rally from aerospace to financial shares.
London's FTSE 100 index rose 0.9 percent to 6,269.3, while Frankfurt's electronically traded Xetra Dax gained 49.02 points, or 0.7 percent, to 6,814.06 and the CAC 40 blue chip index in Paris edged up 0.4 percent to 6,319.79.
 Aerospace and defense firms including Britain's BAE Systems (BA-) and French aircraft maker EADS (PEAD) were among the major markets' big gainers.
Tech shares such as software provider SAP (SAP) and technology consultant Cap Gemini (PCAP) also supported the markets.
Milan's MIB 30 climbed 0.4 percent, led by an 10.2 percent gain for tire maker Pirelli after agreed to sell its 90 percent-owned optical components business to U.S. firm Corning Inc. (GLW: Research, Estimates) for $3.6 billion.
 click here for the biggest movers on the ftse 100 in London
 click here for the biggest movers on the dax 30 in Frankfurt
 click here for the biggest movers on the cac 40 in Paris
The SMI in Zurich slipped 0.3 percent and Amsterdam's AEX edged up 0.4 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, rose 0.4 percent, with its aerospace and defense sub-index up 3.1 percent.
In the currency market, the euro traded at 88.13 U.S. cents, down from 88.26 cents late Tuesday in New York.
Intervention by the European Central Bank, the U.S. Federal Reserve and other industrial nations to prop up the European single currency "can work," Neil Mackinnon, an economist at Merrill Lynch & Co., told CNNfn. "We expect a gradual recovery and a 'yes' vote in the Danish referendum to give the euro a lift."
Danes vote Thursday on joining the fledgling European currency. Opinion polls indicate that the "no" campaign has a slight lead.
In the U.S., the Dow Jones industrial average fell 5.18 points to 10,625.68 and the Nasdaq Composite index was down 0.14 point to 3,688.96,
Techs join 'old economy' share rally
German software house SAP (SAP) advanced 3.2 percent. In Paris, information technology consultant Cap Gemini (PCAP) climbed 2.9 percent.
News and financial data company Reuters (RTR) climbed 5.9 percent after Tibco Software (TIBX: Research, Estimates), its majority-owned unit supplying high-speed data distribution software, on Tuesday reported fiscal third-quarter earnings that surpassed Wall Street's expectations.
"Old-economy" shares joined the telecom-led rally across the continent. National Grid (NGS), which owns most of Britain's electricity lines, climbed 5.4 percent after a ruling by the power industry's regulator boosted optimism for the company's future profits. United Utilities (UU-) advanced 4.8 percent and gas and electricity supplier Centrica (CNA) added 5.7 percent.
BAE Systems (BA-) rose 4.6 and French aircraft maker EADS (PEAD) led the Paris bourse's gains, up 6 percent.
Invensys (ISYS) climbed 6.5 percent as speculation continued that Tyco International (TYC: Research, Estimates), the world's biggest maker of electronic connectors, is considering a £6 billion ($8.8 billion) bid for the British maker of factory controls.
 Oil companies gained as the price of crude inched higher. Shell Transport and Trading (SHEL) rose 1.3 percent, BP Amoco (BP-) added 0.3 percent and France's TotalFina Elf (PFP) climbed 0.8 percent.
Television broadcaster Granada Media (GME) fell more than 12.9 percent, extending similar losses in the previous session. The company warned that first-half broadcasting revenue won't match last year's. Rival broadcaster Carlton Communications (CCM) also fell further, suffering a 5.5 percent decline. French TV company TF1 (FTFI) slid 4.7 percent.
Bank of Scotland (BSCT) fell 4.9 percent after reporting that first-half pretax profit rose 14 percent to £535 million, driven by strong loan growth. But other financials across Europe gained. Deutsche Bank (FDBK) was 1.5 percent higher and insurer Assurances Générales de France (PAGF) gained 1.9 percent.
In Paris, luxury retailer LVMH Moet Hennessy Louis Vuitton (FMC) rose 2.4 percent. The company claimed it had moved a step closer to winning its hostile bid to buy Italian fashion house Gucci Group after a court cancelled an earlier ruling that had given rival Pinault-Printemps-Redoute (PPR) a blocking stake in Gucci. Shares in Pinault fell 1.9 percent.
 In Germany, retailer Karstadt Quelle (FKAR) rose 4.8 percent and tour operator Preussag (FPRS) rose 2.9 percent.
DaimlerChrysler (FDCX) was up 2.7 percent following the company's announcement that it expects to report high earnings for the year.
Pharmaceutical firm Shering (FSCH) rose 3 percent after the company said U.S. regulators approved its skin lesion drug. 
|
|
|
|
|
 |
|
