European markets advanced despite a fresh fall in the euro, as investors took heart from a steady opening on Wall Street. Action concentrated in the computer services and information technology sectors, up 12.2 and 4.2 per cent respectively, following a sharp retreat in recent days.
The FTSE Eurobloc 100 index, which covers leading companies in the euro zone, closed up 12.91 or 1.2 per cent to 1,054.32. The FTSE Eurotop 100, covering countries inside and outside of EMU, climbed 12.63 to 2,957.01, while the broader FTSE Eurotop 300 settled 6.50 higher to 1,283.36.
Frankfurt clawed back almost half of Tuesday's 3 per cent shakeout, with the Xetra Dax index climbing 74.16 to 5,175.57 to end within a whisker of its best for the session.
Solid first-quarter sales gains, plus confirmation that revenues would grow by up to 25 per cent for 1999, sent SAP shooting ahead. The stock, which tumbled from €411 to €256 between January and late March, surged €48 or 17.5 per cent to €321.
Investors stayed cool on Deutsche Telekom as the political debate over the group's plans to merge with Telecom Italia appeared to swing against the deal. Telekom shed 52 cents at €36.08 for a decline of 13 per cent in five sessions.
Paris recovered a third of the ground lost during Tuesday's sharp plunge. The CAC-40 added 38.33 or 0.9 per cent to 4,291.60.
France Telecom was up €1.55 or 2.1 per cent to €74.75 after a 9.5 per cent fall this week. The rise came as negotiations on the Telecom ItaliaDeutsche Telekom merger showed signs of dragging on.
High-tech stocks reversed their downward course, with Cap Gemini up €6.20 to €132.40 while STMicroelectronics rose €3.35 to €98.50.
Amsterdam recovered strongly, climbing €5.59 or 1 per cent to €555.21 on the AEX index.
Chemicals leader Akzo Nobel surprised investors and analysts with a top of the range first-quarter statement. The shares shot ahead to €44.15 before settling at €43.10, up €2 or 4.9 per cent. In the same sector, DSM gained €3.75 at €93.85.
Milan turned its attention to the telecoms sector as Telecom Italia and Tim, its mobile phones business, were re-quoted after two days of suspension.
Helsinki got a boost from Nokia, which tracked high-tech issues in the US. Shares in the heavily weighted company advanced €4.45 or 6.8 per cent to €70.25 ahead of its first quarter results today.
Madrid followed the rest of Europe, with the general index rising 8.99 to 869.74. The leader by volume was Telefonica, up 82 cents to €41.51.
