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Vodafone powers Europe
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November 14, 2000: 12:35 p.m. ET
Techs, telecoms boost Europe, Voadfone earnigs lift London; Paris up 3.3%
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LONDON (CNNfn) - European bourses surged Tuesday, led by telecom and technology stocks after mobile-phone titan Vodafone Group, Europe's most valuable company, beat earnings forecast and reported an upbeat future. The Nasdaq's sharp morning charge in the U.S. added to the markets' momentum.
The blue-chip CAC 40 in Paris soared 188.25 points, or 3.1 percent, to 6,225.98, with chipmaker STMicroelectronics (PSTM) and index heavyweight France Telecom (PFTE) among the leading gainers.
 London's benchmark FTSE 100 index jumped 138.1 points, or 2.2 percent, to 6,412.9. "New-economy" stocks accounted for nine of the 10 biggest percentage gainers in the index.
Frankfurt's late-trading Xetra Dax climbed 211.17 points, or 3.1 percent, to 6,953.27. Deutsche Telekom (FDTE) and chipmaker Infineon Technologies (FIFX) were the top two gainers on the benchmark index.
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Among other leading European markets, the AEX index in Amsterdam climbed 2.2 percent, the MIB30 in Milan added 2.7 percent, and the SMI in Zurich nosed up 1.4 percent.
The broader FTSE Eurotop 300 index, a basket of Europe's largest companies, rose 2.4 percent, with its telecom sector jumped 6.5 percent and the information technology hardware sub-index roared 7.3 percent.
However, analyst George Hodgson at ABN Amro in London said Europe's bourses – particularly "new-economy" stocks – may not have turned the corner yet, saying share values still are too high.
"After the bubble in the tech sector this spring, I expect the shares to get positively cheap before people start buying again, and we aren't there yet," said Hodgson. "My view is that we have more downside to come."
Wall Street rose sharply Tuesday midday. The Nasdaq composite index jumped 4 percent to 3,086.47 after slumping below the 3,000 level Monday for the first time this year. The Dow Jones industrial average climbed 1.1 percent to 10,634.42.
In the currency market, the euro slipped to 85.66 U.S. cents from 85.95 cents in late New York trading a day earlier.
 On the London market, Vodafone Group (VOD), the world's largest mobile-phone operator, surged 10.2 percent after reporting earnings before interest, tax, depreciation and amortization climbed to £3.3 billion ($4.8 billion) in the first half of the year, at the high end of analysts' forecasts of £3.0-£3.3 billion.
The cell-phone company gave a bullish forecast for the coming months, predicting it will reverse a decline in profit margins in the key German and British markets that it suffered in the first half of the year.
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Also in London, fixed-line telecom operator Energis (EGS) climbed 7.2 percent after reporting half-year earnings before interest, tax, depreciation and amortization rose 71 percent to £65.5 million, boosted by strong demand for Internet and advanced telecom services in Britain and continental Europe. Analysts expected EBITDA of £60-£63 million.
Elsewhere in the sector, business telecom operator COLT Telecom (CLT) rose 7.7 percent, while network equipment maker Marconi (MNI) added 5.4 percent. In Paris, Dutch-based data network operator Equant (PEQU) gained 5.8 percent.
Recently battered fiber-optic equipment maker Bookham Technology (BHM) rebounded 14.7 percent. The stock had fallen 42 percent in just over a week.
Elsewhere in Europe's telecom sector, France Telecom (PFTE) soared 10.1 percent and rival Bouygues (PEN) rose 5.8 percent. Deutsche Telekom (FDTE) climbed 6.8 percent in Frankfurt.
Italian telecom operator Olivetti rose 4.9 percent. The company controls Telecom Italia through its Tecnost unit, but a planned Olivetti-Tecnost merger is due to dilute Olivetti shareholders' control, sparking speculation that a new friendly shareholder might be brought in to ward off predators. Telecom Italia shares rose almost 5 percent and Tecnost gained 4.3 percent.
Computer services providers also got into the groove. Among U.K. companies, Sema Group (SEM) rose 4.4 percent, Sage Group (SGE) added 5.4 percent and Logica (LOG) gained almost 8 percent. Cap Gemini (PCAP) climbed 6.5 percent in Paris, while Europe's biggest software company, SAP (FSAP), jumped 3.9 percent in Frankfurt.
German steel and engineering group ThyssenKrupp (FTHY) tacked on almost 3 percent after reporting pretax profit rose to roughly  1 billion ($860 million) in the fiscal year ended Sep. 30 from 600 million a year earlier. The company said it plans a more active policy of buying and selling businesses.
 Deutsche Bank (FDBK) added 2.9 percent after Europe's largest bank announced plans to speed up the sale of industrial shareholdings worth some 20.2 billion ($17 billion) to take advantage of tax reductions in Germany expected to take effect in 2002.
Italian bank Bipop-Carire was the biggest gainer on the MIB 30 in Italy, rising 5.9 percent after announcing nine-month net jumped 84 percent.
In the reviving chip sector, Paris-listed Franco-Italian chip manufacturer STMicroelectronics (PSTM) climbed 7.2 percent to lead the gainers on the CAC 40. Its German rival Infineon Technologies (FIFX) rose almost 6 percent in Frankfurt, while electronic component maker Epcos (FEPC) added 5.7 percent.
ASM Lithography, a producer of semiconductor making equipment, blasted up 7.8 percent in Amsterdam. Europe's biggest consumer appliances company, Philips Electronics, jumped 6.8 percent.
In the Internet sector, investors said "let's buy it" to the stock of online retailer letsbuyit.com (ALBC), driving it up 19 percent on the German Neuer Markt after the firm posted a narrowed net operating loss for the fiscal third quarter.
-- from staff and wire reports 
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