European markets traded narrowly with the three core FTSE indices improving by 0.4 per cent. The FTSE Eurobloc 100 index rose to 1,094.59 and the FTSE Eurotop 100 index ended at 3,016.49. The FTSE Eurotop 300 index closed at 1,321.20.
Paris scraped back into positive territory in the final moments of the session to close with the CAC-40 index 0.42 higher at 4,722.35 after a low for the session of 4,702.2.
Lagardere rose 92 cents to €41.17 and Canal Plus gained 95 cents at €60.75 after a local press report linked the two groups. The story was that Lagardere was set to take a 30 per cent stake in a Canal Plus offshoot, CanalSatellite.
STMicroelectronics was the top performer among CAC-40 components, rising €3.45 or 4.4 per cent to €81.25 after the group announced a fresh cellular partnership. France Telecom unwound some of last week's strong gains in turnover of €107 million amid uncertainty about Global One, the corporate carrier in which the group has a 25 per cent stake. The main concern appeared to be that France Telecom was poised to buy out the other shareholders in Global One at too high a price. The shares lost €2.35 at €86.50.
Frankfurt, up a net 5.7 per cent last week, made several attempts to shake off the profit-takers but succumbed in the end to close with the Xetra Dax index off 4.76 at 5,414.50.
Lufthansa rose to a four-month high, extending the recent strong run for the shares on lower oil prices and hopes for corporate activity. The stock added 45 cents at €19.33. News of capital spending of $47 billion over the next three years helped lift DaimlerChrysler €1.34 to €69.45. The buyers returned to Metro lifting the retailer 97 cents to €50.64. RWE fell €1.10 to €37.20 after the company denied press speculation that it was set to bid £7.5 billion sterling (€11.65 million) for British utility National Power.
Amsterdam saw steady buying of financials and the AEX index ended 4.93 ahead at 559.77. Financials had a lively session with gains of more than 2 per cent commonplace in the sector. ABN Amro rose 50 cents to €22.05 and Aegon added €1.70 at €82.90. Fortis ended 65 cents better at €30.47.
