Bourses pulled ahead in afternoon trade as strong corporate earnings sent Wall Street higher and helped to divert attention away from the prospect of higher interest rates in the US and Europe. The FTSE Eurobloc 100 index rose 2.54 to 1,063.47. The FTSE Eurotop 100 index added 9.80 to 2,923.50 while the broader FTSE Eurotop 300 was 2.57 higher at 1,247.99.
Frankfurt ended little changed with the Xetra Dax index off 5.68 at 5,291.23. This was 35 points short of the best level of the session.
Mannesmann rallied strongly as rumours of a take-over bid for the telecoms and engineering group replaced concerns about potential acquisitions. The group is in line to pay an estimated €28 billion for Orange, the British cellular operator, and Swiss cable group Cablecom. But yesterday speculation switched away from equity financing fears to the possibility of a spoiling offer. Talk of an outright bid for Mannesmann from a sector heavyweight, widely tipped to be Vodafone AirTouch, helped lift the stock €3.20 to €157.80 in active trading volume.
SAP tumbled €21.40 or 5.3 per cent to €386.50 after the software leader turned in steeply lower third quarter earnings. The shares, which had been badly hit by a profits warning, are now some 20 per cent below the €465 high touched two weeks ago.
Lufthansa added 30 cents at €19.50 amid press reports that the airline was set to take a 20 per cent stake in British Midland and in the process boost its landing slots at London's Heathrow airport.
Amsterdam rallied a further 5.80 to 544.21 on the AEX index for a two-day gain of close on 3 per cent. Media stocks continued to improve. Wolters Kluwer jumped €1.70 at €30.75 and VNU €1.88 or 6.2 per cent at €32.25.
Paris failed to maintain the momentum of Tuesday's rally. The CAC-40 temporarily recovered from a shaky start, rising cautiously by around 0.5 per cent in afternoon trading before closing down 13.37 at 4,577.83.
Madrid also failed to make fresh headway after Tuesday's modest gains. The Madrid General Index ended 0.45 lower at 843.08. The banking groups, which rose on Tuesday on news of the merger between BBV and Argentaria, shone less brightly. While BBV and BSCH enjoyed small rallies, Argentaria was hit by profit-taking and closed the session 30 cents lower at €21.39. Analysts were upbeat on the merger plan, which J.P. Morgan said should permit both parties to achieve cost savings and to reinforce their competitive position in the euro zone.
