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U.S. data spurs Europe
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December 3, 1999: 1:05 p.m. ET
Paris closes at a record, Frankfurt soars 3% on employment report
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LONDON (CNNfn) - Europe's main bourses all posted big gains at the close Friday after U.S. employment data prompted an end-of-week buying spree, with Paris posting a record high close.
The markets celebrated the benign implications for U.S. inflation, as the euro continued to wobble on either side of parity with the dollar.
The CAC 40 in Paris finished in uncharted territory as it surged 114 points, or 2.1 percent, to end at 5,468.05. French blue chips added 71 points, or 1.3 percent, over the last five trading days.
London's benchmark FTSE 100 jumped 1.3 percent, or 89 points, as it closed at 6,742.2, just 17 points short of its all-time high. Technology stocks led the way higher, with a number of them posting double-digit percentage gains. The rally helped the index advance 57 points for the week, a rise of 0.8 percent.
In Frankfurt, the Xetra Dax put in the strongest performance as broke through the 6,000 level and roared almost 185 points higher to 6,121.77, a climb of 3.1 percent. The big one-day rise helped the index to a 2.7 percent gain over the week.
Zurich's SMI put in the weakest performance of the session, relatively speaking, as it jumped 62 points, or 0.8 percent, to 7,547.3. Swiss blue chips have gained 2.4 percent over the last week.
The FTSE Eurotop 300, a pan-European index that offers a broad gauge of regional sentiment, reflected the bullish mood across the Continent as it jumped 1.8 percent to close at a record high of 1,483.41. Tech stocks led the way, surging almost 8 percent.
The beleaguered euro, which fell below one-to-one parity with the dollar for the first time Thursday in New York, endured a volatile session around the $1 mark. It hit a low of 99.94 cents, but was back around the $1.002 mark late in European trade.
The Dow Jones industrial average shared the upbeat response to the U.S. employment data by European bourses. U.S. blue chips started brightly and the Dow was some 2.3 percent higher as European bourses closed.
In London, computer services company Sema (SEM) rocketed 21 percent before closing 11.6 percent higher. Telewest (TWT) was the biggest gainer -- the cable operator’s stock closed 18 percent higher after it announced plans to launch interactive TV in the United Kingdom.
Cable and Wireless (CW-) surged 9 percent, just off its highs for the session. But the two telecom heavyweights -- Vodafone AirTouch (VOD), the hostile bidder for Germany's Mannesmann (FMMN), and British Telecom (BT-A) -- lagged the rally. BT was up just 1.6 percent, while Vodafone put on a late spurt to gain 2.1 percent by the close.
Global financial information company Reuters (RTR) rose on positive news for two of its U.S. units, Instinet Corp and Tibco Software. The New York Stock Exchange decided Thursday to scrap a rule that banned member firms from trading some of its listed stocks. It also recommended that the Intermarket Trading System be expanded. Instinet is an electronic trading floor. Reuters shares advanced 5.4 percent.
Other technology stocks were also strong in London. Telecom equipment maker Marconi (MNI) jumped 9.3 percent, Sage (SGE) surged 12 percent, and IT services company Mysis (MSY) made similar double digit gains.
In contrast, drug store chain Boots (BOOT) was the biggest loser as it slumped 6 percent.
In Paris, telecom heavyweight Alcatel (PCGE) soared 9 percent after several big brokerage firms upgraded their recommendations for the company.
Another telecom power, France Telecom (PFTE), jumped 5.7 percent.
Other tech stocks were also strong in Paris as chip maker STMicroelectronics (PSGS) rallied 7.9 percent and information technology consultants Cap Gemini (PCAP) soared 7 percent.
Telecom network operator Equant (PAR) pared much of its earlier gains to close just 1.6 percent higher. The stock moved after several big investors were rumored to be about to sell 20 million shares each, leaving no majority stakeholder in the company and paving the way for a possible takeover.
In Frankfurt, Deutsche Telekom (FDTE) rebounded from sizable losses to lead the blue chip index higher as it soared 6.5 percent. Deutsche Bank (FDBK) lent further impetus to the Dax as it jumped 3 percent.
Mannesmann (FMMN) was also strong as the shares leapt 3.2 percent. Traders said hedge funds were betting that Vodafone’s hostile bid would succeed.
Electronics giant Siemens (FSIE) tracked the tech rally across Europe as it rocketed 5.1 percent. Software giant SAP [FSE:FSAP3] surged 7.2 percent.
Retailer Karstadt Quelle (FKAR) was the biggest gainer as it roared up 7.3 percent, while car maker BMW (FBMW) gained 2.2 percent.
Elsewhere, two of the world’s leading cellphone makers also put in a strong performance after positive comments on growth prospects for the market.
In Stockholm, Swedish giant Ericsson jumped almost 6 percent to a record high of 469 Swedish crowns, helping the OMX blue-chip index to gains of 2.4 percent.
In Helsinki, rival Nokia also hit a record high as it jumped almost 9 percent to close at 154 euros. 
-- from staff and wire reports
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