European markets rallied as investors focused on core stocks. The FTSE 100 index gained 1.2 per cent at 1,267.81. The FTSE Eurotop 100 index was little changed at 3,438.43 and the FTSE Eurotop 300 index improved 0.4 per cent at 1,479.36. The top performing sectors were information technology and telecoms, up 4.3 per cent and 4.1 per cent respectively.
Paris scored its 32nd closing record since the beginning of the year, with high-tech stocks spearheading the rise. The CAC-40 index climbed 24.54 to 5,534, after setting an intraday record of 5,559.17 after sound US productivity data. TF1 and Sagem were both suspended after hitting their upper limit for the session, closing up 10 per cent and 15 per cent respectively. TF1 gained €38.50 to €421, while Sagem advanced €61.20 to €456.20.
Canal Plus also made strong gains as investors revalued its subscriber base following BSkyB's decision to pay £1.5 billion for a 24 per cent stake in Kirch PayTV. L'Oreal rose €23 to €703, on renewed interest in consumer stocks.
Frankfurt pushed ahead on the Xetra DAX index, adding 16.58 to 6,158.77. Utilities Viag and Veba rebounded after several days of weakness on concern that the groups' planned merger had hit snags. Viag added 50 cents at €15.90 and Veba gained €1.23 at €46.70.
Insurers were also in demand. Munich Re jumped €6.25 to €208.55 following positive comment from Goldman Sachs and CS First Boston. Sector rival Allianz added €1.20 at €288.20.
SAP stayed firm in spite of a wobbly start on Wall Street for the techs-weighted Nasdaq index. The software leader added €14 at €489 for a two-day rise of 9.3 per cent. Tourism and industrial group Preussag, buoyed lately on hopes for links with Accor or Club Med of France, fell 80 cents to €48.50.
Helsinki forged 6 per cent higher to a record close, led by Nokia. The HEX general index advanced 737.94 to close at 12,889.63 on hefty volume of 1,495 million. Two-thirds of this turnover was in Nokia shares alone. Nokia jumped 8.5 per cent, driving past BP Amoco to become Europe's most valuable company with a market capitalisation of €202.9 billion.
Madrid hit a fresh closing high. The Ibex-35 blue-chip index rose 239.6 to 11,549.6, a rise of more than 2 per cent, while the general index rose 17.33 to 1,000.09.
Amsterdam saw a steep fall at retailer Ahold in some of the busiest volume of the day. The stock came off €1.28 or 4.1 per cent at €29.99 in 8.6 million shares traded. Unilever eased 45 cents to €56.30.
Telecoms leader KNP gained 50 cents to €60.45 in spite of denying rumours of an imminent link-up in mobile phones with Vivendi of France.
Milan pushed up to a third consecutive closing high for the year. The Mibtel index finished 209 higher at 25,996.
