European markets traded narrowly. Frankfurt and Amsterdam edged ahead to record highs, but most markets lost ground. The FTSE Eurobloc 100 index shed 0.3 per cent at 1,304.43 and the FTSE Eurotop 100 index 0.5 per cent at 3,467.65. The FTSE Eurotop 300 index came off 0.4 per cent at 1,504.38.
Paris provided several fast-moving features with construction and telecoms group Bouygues and pay-TV leader Canal Plus vying for top slot in the day's performance charts.
Bouygues shot ahead on rumours that it would sell its 54 per cent stake in Bouygues Telecom to Deutsche Telekom. The shares reached a high of #556.50 before closing at #554.50, up #72.50 or 15 per cent despite denials from both Bouygues and Deutsche Telekom.
Canal Plus continued its recent rally, supported this time by speculation that Spain's Telefonica was set to take a stake in the company. The stock jumped #14.80 or 13.2 per cent to #127.
Retailer Pinault Printemps surged #11.30 or 5.1 per cent to #232 on news of an e-commerce link with TF1, the TV group. TF1 added #12 at #494.50. The CAC-40 index ended 8.13 better at 5,529.24.
Frankfurt extended its record run with the Xetra DAX index up 40.02 at 6,418.68. DaimlerChrysler added #1.61 at #72.41 and Volkswagen 86 cents at #54.48 as investors continued to seek out selected cyclicals. But Porsche lost #10 at #2,710 in spite of an earnings upgrade at Goldman Sachs. Viag rose 87 cents or 5.3 per cent to #17.37, helped by news that the group was negotiating to lift its stake in Connect Austria, the mobile phone group, to 37.5 per cent.
Amsterdam edged ahead to a fresh record. KPN continued to gain ground as speculation about wider share ownership of the telecoms group was joined by broker optimism. Both Morgan Stanley Dean Witter and J.P. Morgan upgraded the stock which rose #2.60 to #87.70 for a two-day advance of more than 9 per cent.
The AEX index closed 0.09 firmer at #643.61.
Helsinki turned back from Monday's all-time high as Nokia and Sonera fell prey to profit-takers. The Hex general index finished 268.25 or 2 per cent lower at 13,410.92. Nokia gave up 1.9 per cent to #168.80 and Sonera lost 5.7 per cent to #56.10 as strong foreign demand faded.
But mobile phone maker Benefon, up 29 per cent on Monday, leapt another 50.5 per cent to #12.85 as smaller investors bought the stock in response to news that it would launch an Internet-enabled WAP phone next February.
Some analysts were sceptical, however, doubting that the small, loss-making company would find a way into profit any time soon.
In the opposite direction, insurer Pohjola tumbled 6.7 per cent to #56 when trade resumed after the group's biggest owner unveiled a plan that could spell the end for the company.
