European markets mainly marked time yesterday as they awaited the US Federal Reserve's meeting this week to set interest rates. Trading volumes were low, with most bourses rallying in late trade as Wall Street climbed.
The Eurobloc 100 index rose 5.95 or 0.6 per cent to 1,085.29 and the Eurotop 100 index climbed 5.88 or 0.2 per cent to 3,025.28. The more broadly based Eurotop 300 index ended 2.71 or 0.2 per cent higher at 1,312.89.
Frankfurt staged a strong rally from around the middle of the day, eventually closing 55.74 higher at 5,356.95 on the Xetra Dax index after touching an early low of 5,283.73.
Deutsche Telekom pulled back from recent lows following the completion of the telecommunications giant's 10.5 billion global equity issue. It rose 80 cents to 40.30 in nearly 17 million shares traded. The shares rose to the top of the European performance charts, gaining #2.05 or 4.9 per cent to #44.25.
Siemens was also strong, rising #1.41 to #74.81 on Indian contract news. Retailer Karstadt added #9.55 at #469.
Paris edged higher, lifted by strength on Wall Street and block trades in several large stocks. The CAC-40 index ended 48.34 or 1.1 per cent up at 4,465.23, its session high.
The large number of block trades was seen as a sign of heavy arbitrage dealing and portfolio adjustment ahead of the holiday season.
Usinor, Renault, Rhone-Poulenc and Total were all heavily traded.
The three big banks involved in a complex takeover battle all remained under pressure after failing to agree a compromise deal at the weekend.
Banque Nationale de Paris fell #1.30 or 1.6 per cent to #78.50, Societe Generale dropped #1.0 or 0.6 per cent to #164 and Paribas ended #1.90 or 1.8 per cent lower at #104.10.
Canal Plus, the media group, surged after it reached a deal to share football broadcasting rights with TPS. Canal Plus ended #9.30 or 3.6 per cent higher at #270.60.
Amsterdam pushed higher with a bit of help from the better tone in the local bond market. The AEX index advanced 2.07 at 563.72.
Blue chips set the scene. Philips improved 75 cents to #93.75, Royal Dutch added 30 cents at #56.80 and Unilever put on 95 cents at #67.
Aegon stood aside from the rally for financials, dipping #1.35 to #73.50. Steel leader Hoogovens lost ground on news of a capacity shutdown, closing off 50 cents at #49.50.
Foods group Nutreco rose 70 cents to #34.60 after announcing a Portuguese acquisition.
Milan edged ahead, but with little enthusiasm ahead of tomorrow's decision on US interest rates. The real-time Mibtel index finished 57 higher at 24,573.
