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European markets mixed
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October 22, 2001: 7:23 a.m. ET
Oil stocks rise on speculation OPEC may cut output, BASF falls as bid battle looms
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LONDON (CNN) - Europe's major bourses were mixed on Monday, with oil stocks gaining amid speculation that OPEC may slash output to prop up crude prices.
The Organisation of Petroleum Exporting Countries has appeared reluctant to cut output before its scheduled meeting on November 14, partly because of political pressure as the US bombs Afghanistan.
Brent crude futures for December delivery rose 10 cents to $21.45 in early London trade. Brent rose 73 cents to $21.35 on Friday.
London's FTSE 100 rose 0.8 percent to 5,060.2, the CAC 40 blue chip index in Paris gained 0.2 percent to reach 4,273.19, while Frankfurt's electronically traded Xetra Dax was little changed at 4,513.34.
BP (BP-), the world's second-largest publicly traded oil company, rose 2 percent and and Shell Transport & Trading (SHEL), which owns 40 percent of the world's No. 2 Royal Dutch Shell, gained 1.7 percent.
France's Total Fina Elf (PFP) gained 1 percent in Paris and Italy's ENI added 1.9 percent in Milan.
Airlines were having a mixed session. British Airways (BAY), Europe's biggest carrier, rose 4.1 percent after its chief executive Rod Eddington said on Sunday he was talking to Dutch carrier KLM and other airlines and expected the European airline industry to consolidate sharply as it struggles in the aftermath of the September attacks in the U.S..
German airline Lufthansa (FLHA) fell 2.5 percent after Germany's Handelsblatt newspaper reported the carrier may face an operating loss of up to  500 million ($450 million) in the fourth quarter.
The chemical sector was active on bid speculation. BASF (FBAS), Europe's biggest chemical company, fell 3.3 percent after France's Les Echo said the company may enter a bidding battle for French specialty chemicals group Rhodia.
BASF's Dutch rival DSM has offered 14 a share, valuing the company at 2.5 billion ($2.2 billion). That is higher than BASF's 12 a share offer, the paper said. DSM lost 2.5 percent and Rhodia surged more than 20 percent.
British media stocks rose amid reports two partners in a digital venture would cut their losses and close the business. British Sky Broadcasting (BSY), Europe's second-biggest pay-tv company, is expected to win one million customers if Granada (GAA), Britain's biggest commercial broadcaster, and rival Carlton Communications (CCM) shut up shop.
Rupert Murdoch's BSkyB rose 4.5 percent, Granada climbed 3.1 percent and Carlton advanced almost 4 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, rose 0.4 percent, with oil and gas sector in positive territory, while the chemicals sector headed south.
In Amsterdam the AEX index slipped 0.1 percent, the SMI in Zurich was 0.8 percent higher and Milan's MIB30 index rose 0.5 percent.
In the U.S. on Friday, equity markets rose in a late rally, led by technology and blue chip stocks. Over the week, markets closed for the first time in a month, as stock investors backed off from a three-week rally in the face of greatly magnified national security fears.
The Nasdaq composite index rose 1.1 percent to 1,671.31, while the Dow Jones industrial average gained 40.89 points, or 0.4 percent, to 9,204.11.
Wall Street was expected to open lower later on Monday. S&P 500 index futures slipped 2.7 points to 1,069.8 on the Globex trading system, while fair value, a measure that takes account of interest costs and dividend payments, was calculated at 1,074.8. 
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