European markets ended on a firm note yesterday after a day of mixed fortunes as investors did their final calculations on the outcome of the Federal Reserve's monetary policy meeting.
The FTSE Eurobloc 100 index improved 0.6 per cent to 1,090.11 to close within a whisker of its best of the session. The FTSE Eurotop 100 index added 0.4 per cent at 3,022.39 and the broader FTSE Eurotop 300 index hardened 0.2 per cent to 1,313.35.
Paris surged ahead of most European bourses on strong performances by banks and a handful of blue-chip stocks in other sectors.
The CAC-40 index climbed 53.05, or 1.2 per cent, to 4,540.40, putting it 7.5 per cent higher than at the close on August 6th.
Banque Nationale de Paris, Paribas and Societe Generale all prospered on speculative buying as their long-running takeover battle reached its climax. The banking regulator is due to decide by the end of the week on the outcome of the dispute, which has resulted in BNP winning control of Paribas but not of SocGen.
BNP surged nearly 4 per cent to #77.10, while SocGen rose #4.10, or 2.2 per cent, to #189.40 and Paribas finished #6.20, or 5.9 per cent, ahead at #111.3.
Canal Plus, the media company, led gainers on the CAC as investors speculated that Vivendi, its parent company, might soon sell part of its stake. Canal Plus rose #4.30, or 7 per cent, to #65.70.
Elf Aquitaine, the oil group fighting off a hostile bid from its rival, TotalFina, climbed #5.70, or 3.4 per cent, to #173.50 after reporting slightly better than expected first-half results.
Frankfurt reversed early losses to close with the Xetra Dax index up 22.04 at 5,324.02 after a low for the session of 5,268.24.
Firm features included utility RWE, up #1.67, or 4.1 per cent, at #41.89, and Munich Re, which gained #2.30 at #190 on rumours of a US acquisition. Telecoms group Mannesmann put on #3.50 at #142.50.
Banks moved lower as profit-taking set in after Monday's excitement at the news that Deutsche Bank and Dresdner planned to merge their retail banking operations. Deutsche Bank finished on a positive note, up 1 cent at #67, but Dresdner gave up 60 cents at #44.29 and Commerzbank lost 46 cents at #33.29.
Zurich was battered by a shakeout at top bank UBS and, at the close, the SMI index was down 43.2 at 7,104.2.
Amsterdam traded narrowly, to close with the AEX index up 1.25 at 572.62.
Madrid rallied after Monday's subdued trading, with market bellwether Telefonica continuing to recover from a period of weakness. The general index ended 10.70, or 1.2 per cent, higher at 882.06, out-performing most other European markets.
