EUROPE REPORT: Technology, media and telecom stocks were in the ascendancy, with gains of 5 to 10 per cent following relief that figures from Intel and Motorola were not worse.
Frankfurt DAX: 4,092.82 (+115); Paris CAC: 3,440.88 (+123)
Leading the way was Deutsche Telekom, which extended yesterday's gains following the announcement of Dr Ron Sommer's departure as chief executive. The shares rose 9 per cent to €11.92 and other telecoms followed close behind. France Telecom gained 6 per cent to €14.51 and Telefónica rose 7 per cent to €9.50.
Among technology names, Ericsson gained 8.7 per cent to SKr15 and Nokia was up 6.4 per cent to €14.40. Nokia reports second-quarter results today and Ericsson on Friday. Philips, which reported results on Tuesday, added 6 per cent to €24.90.
Chipmaker Intel gave a boost to Dutch chip equipment maker ASML, which rose 6.8 per cent to €15.15. The company announced an increase in orders and raised its forecast for expected deliveries in the second half.
Banks enjoyed a much-needed rally, with several stocks in the sector rising 4 per cent or more. BNP Paribas climbed 4.3 per cent to €47.25, Société Générale rose 5 per cent to €56.30 and Santander Central Hispano added 6.4 per cent to €7.63.
BBVA of Spain rose 4.7 per cent to €10.60 in spite of reports that it was under investigation by the US Department of Justice over alleged money laundering.
Greece's General Hellenic Bank fell 5.2 per cent to €6.98 in the wake of news earlier in the week that its main shareholder had failed to dispose of a 15 per cent stake in the bank. There had been widespread hopes that the sale would be conducted at a premium price.
The insurance sector also recouped some of its recent losses. Dutch group ING jumped 7.6 per cent to €22.49, while Allianz rose 3.4 per cent to €182 and Axa firmed 3.1 per cent to €14.09.
- (Financial Times Service)
