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European bourses open flat
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October 22, 1998: 4:35 a.m. ET
Stocks steady as markets await corporate earnings and Bundesbank
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LONDON (CNNfn) - European markets showed few signs of marching forward in early trade, with the absence of big advances in New York and Tokyo failing to provide direction.
London's FTSE index added a modest 9.8 points in early trade to 5216.4.
Frankfurt's electronically traded Xetra Dax Index added 0.71 percent while Switzerland's SMI was up more strongly at 115.1 points, or 1.88 percent, to 6134.1.
Paris's CAC 40 opened weakly in pre-trade, but edged 36.82 points up before the market's official open.
Overnight the Dow Jones industrial average closed just 13.38 points higher at 8,519.23 while Japan inched forward just 0.56 percent in Thursday trade.
As a result European markets would be looking to local factors for a lead, said RaboBank head of equity strategy Roger Monson.
The Bundesbank council's regular policy meeting takes place later but Monson said it was likely to leave interest rates alone in the run-up to European Monetary Union.
"For them to reduce rates would make it harder for others to reduce rates to converge," he explained.
JP Morgan European equity markets strategist Gary Dugan said with mostly bad corporate news being released, bourses were likely to fall later.
"I think the tide has turned in terms of good news from the corporate sector," he said.
An announcement by electronics company Philips (PHG) early Thursday that third-quarter net profits had plunged 37 percent was a little better than analysts' consensus but was likely the exception, Dugan said.
Philips' shares rose 1.4 guilders to 112.9 at the opening in Amsterdam. The company also announced it's pulling out of a loss-making telecoms joint venture with Lucent (LU).
Swedish telecom company Ericsson (ERICY) reports later Thursday.
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