MARKET REPORT - EUROPE

Frankfurt Dax: 2411.93 (-18.27)

Frankfurt Dax: 2411.93 (-18.27)

Bunds dropped after Bundesbank chief economist Mr Otmar Issing said January M3 money supply data could show distortions due to special influences, a statement which dampened already fading hopes for interest rate cuts. But bunds reversed their losses in late afternoon trade as US debt markets firmed.

Paris CAC-40: 1960.65 (+4.49)

Shares finished higher after a recovery in the US bond market shored up bond prices in Europe and stocks moved sharply higher on Wall Street but the CAC-40 lost 61.56 points in the week.

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Milan Mibtel: 10145 (-11)

Milan shares ended slightly easier after profit taking set in amid concern that Prime Minister designate Mr Antonio Maccanico's attempts to form a government might be dashed.