European equities failed to find much inspiration, with investors still apparently absorbing the Fed's 50 basis point cut in key US interest rates on Wednesday. Goldman Sachs, meanwhile, raised its rating in consumer and industrial cyclicals in its recommended European portfolio yesterday, and cut its defensives weighting. Strategist Mike Young said: "Each time interest rates are lowered, the risk of an extended recession recedes, the prospect of a global economic recovery becomes more likely and the case for cyclicals becomes stronger."
The two-way pull implicit in the 223 million shares in Corus that changed hands in London and Amsterdam on Thursday spilt into the open with brokers offering a wide range of advice on the steel stock.
The group's plans for a massive restructuring involving the loss of 6,000 jobs, drew plaudits from Credit Suisse First Boston and Morgan Stanley Dean Witter but fell foul of harsh criticism at ING Barings.
CSFB upgraded to "strong buy" on the basis of the cost benefits to come. Streamlining UK flat rolled steel "creates a massive forward profits momentum". For its part, Morgan Stanley upped Corus from "neutral" to "outperform".
ING Barings sees Corus's restructuring as beneficial to the steel market in general. It has cut to a "sell" since the stock is trading at "an unwarranted 43.5 per cent premium in terms of 2001 price/ cashflow".
Hit by profit-taking after surging 12 per cent in the preceding session, Corus ended off 3.1 per cent at €1.26 with trading volumes totalling 66 million shares.
Oil leaders trickled higher, with sector sentiment getting a boost from the latest upward blip for crude prices and broad broker optimism ahead of next week's results from Royal Dutch.
Nobody had any very clear ideas why Brent Blend, the North Sea benchmark should have popped above $28 a barrel an eight-week high in recent trading.
US stocks are lowish, northern hemisphere temperatures have moved closer to a seasonal norm and commodity traders have begun to peer ahead to March 26th and the next OPEC meeting, when further production cuts are widely expected.
