Information technology and water, up 2.9 and 1.5 per cent respectively, led the sector performance charts on a day of narrow trading for European bourses. Ahead of today's conclusion to the two-day meeting of the Federal Reserve monetary policy committee, investors remained unwilling to open fresh positions and as a result trading volumes stayed low.
The Eurozone based FTSE Eurobloc 100 index edged higher, adding 0.5 per cent at 1,090.54. The FTSE Eurotop 100 index eased 0.01 per cent to 3,025.06 and the FTSE Eurotop 300 shed 0.1 per cent at 1,311.78.
Frankfurt finished with the Xetra Dax index up 2.58 at 5,359.53. Volumes were modest and the benchmark oscillated narrowly within a range of just 61 points. Mannesmann added €2.31 at €146.61.Telekom, finally free of stock overhang influences following the completion of a 10 billion equity issue, ended off 25 cents at €40.55. Deutsche Bank was the best performer in the Dax, gaining €1.73 to €58.47 on news of management changes at recently acquired Bankers Trust. Lufthansa slid 53 cents to €17.87 after fare discounting on North Atlantic and European routes caused CS First Boston to cut earnings estimates for the airline.
Paris outperformed most other European markets, with investors taking encouragement from a positive economic outlook and falling bond yields. The CAC-40 index finished at a session high 4,503.83, up 38.60 or 0.9 per cent. Suez Lyonnaise des Eaux, the utilities group, was the most heavily traded stock, ending €6.80 or 4.1 per cent higher at €170.70. The stock has risen 5.2 per cent in two sessions since it announced on Monday that it was acquiring Nalco Chemical, the world's largest water treatment company. Renault fell €1.60 or 3.6 per cent to €42.40 on profit taking. The shares climbed almost one quarter between June 9th and June 25th on hopes that Renault's venture with Nissan would give it access the Japanese market.
Amsterdam extended Monday's modest rally, adding a further 1.83 to 565.55 on the AEX index.
Philips stayed firm, improving €1.80 to €95.55 while among leading financials there was a solid showing from ABN Amro which added 25 cents at €21.25.
Milan edged ahead during a dull session, with the Mibtel index 107 higher at 24,680. Olivetti, up 4 per cent at one stage, settled 3.1 per cent higher at €2.38 by the close On Monday Olivetti boss Roberto Colaninno was appointed chairman and CEO of Telecom Italia. He ruled out fresh talks with Deutsche Telekom this year, adding there would be no immediate decisions taken on plans for an in-house merger with Tecnost TESI.MI and partial share buyback of non-voting savings shares. Telecom closed 0.2 per cent lower at €992 while Tecnost gave up 1.9 per cent at €2.47.
