Stock markets in Europe clawed back early losses to ease modestly higher in mid-morning trade in spite of some gloomy economic news.
The pan-European FTSE Eurotop 300 index was up 0.4 per cent at 810.28. Frankfurt's Dax was 0.8 per cent firmer at 2,859.70, and the CAC in Paris was up 0.6 per cent at 2,884.11.
The Ifo institute's index of business sentiment in Germany fell to 86.6 in April from 88.1 in March, compared with expectations of a slight increase. The data could help boost hopes that the European Central Bank (ECB) will cut interest rates when it meets next week to discuss policy.
The Organisation of Economic Co-operation and Development last week called for the ECB to cut the cost of borrowing by 50 basis points.
US rates will also be in focus later this week as investors digest a speech by Federal Reserve chairman Mr Alan Greenspan before the House financial services committee on Wednesday.
ABN Amro, the Dutch banking group, reported first-quarter profits that beat analysts' expectations but said it could give no guidance for 2003 as a whole. The bank said net profits excluding extraordinaries rose by 14.6 per cent to €690 million. The shares were down 1.5 per cent at €15.62.
German insurer Allianz rose 2.7 per cent to €57.70 following reports that it expected to find takers for about 98 per cent of its €4.4 billion emergency cash call. That would leave its bankers with some three million shares to place.
Elsewhere, French engineering group Alstom said it had agreed to sell its industrial turbines business to Siemens of Germany for a total of €1.1 billion.
Agencies