European markets swung higher, bouncing off Friday's losses on the back of a stronger euro and an upbeat opening on Wall Street. The FTSE Eurobloc 100 index rose 1.6 per cent to 1,073.70 and the FTSE Eurotop 100 index gained 1.5 per cent at 2,944.55. The broader FTSE Eurotop 300 index also added 1.5 per cent, improving to 1,290.27.
Frankfurt rose 2 per cent, moving ahead from the opening bell as investors put last week's concerns about rising interest rates to one side.
The strong start on Wall Street added to the upward momentum and by the close, the Xetra DAX index was 99.88 better at 5,224.43.
BMW rose €2.12 or 7.9 per cent to €28.94 after a local press report suggested restructuring could lead to a return to profits at the UK Rover unit by the year of 2002.
Deutsche Telekom added €1.21 at €39.45 on press suggestions of a €65 billion takeover bid for US telecoms group Sprint, in which Telekom has a 10 per cent stake. Meanwhile, banks met with demand. Deutsche Bank added €1.90 at €64.80 and Dresdner put on €1.88 at €46.80. RWE lost 24 cents at €39.10 ahead of today's presentation to analysts.
Paris shared in general excitement across Europe. The CAC-40 index gained 52.67 at 4,603.24. Valeo was the day's top performer, rising €3.20 or 4.66 per cent to €71.90 after the group's name was linked to Dephi, formerly part of the General Motors group, in the US press.
Lagardere gained €1.24 to €40.39 on news that Aerospatiale Matra, in which it has a third stake, will join the CAC-40 index. Changes to the index induced several sharp movements. Foods leader Eridania Beghin Say, which is to be replaced later this month by Bouygues, lost 90 cents at €113.
Amsterdam rose 8.65 to 547.73 on the AEX index, lifted by a strong run for Royal Dutch and a solid performance among financials. Royal Dutch advanced €1.70 or 3.1 per cent to €56.39 after Merrill Lynch added the stock to its Euro strategy buy list. Elsewhere among internationals, Philips added €1.50 at €93.95.
Brushing off worries about a possible rise for European interest rates, financials pushed ahead across the board. ABN Amro gained 33 cents at €21.08 and ING ended €1.26 better at €52.25.
Steelmaker Hoogovens firmed €1.05 to €54.50 on positive broker comment. VNU jumped €1.35 to €32.60 after Merrill Lynch put the media group on its Euro strategy buy list.
