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Europe spurts higher
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December 19, 2000: 1:28 p.m. ET
Telecom and oil issues rise, while Deutsche Telekom lifts Xetra Dax
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LONDON (CNNfn) - Europe's top bourses closed higher Tuesday, with oil and technology stocks spurting higher and Deutsche Telekom lifting Frankfurt's key index.
London's FTSE 100 index rose 48.5 points, or 0.8 percent, to close at 6,295, led by a late surge from computer chip designer ARM Holdings (ARM), which closed up 5.3 percent.
In Paris, the CAC 40 index closed up 71.37 points, or 2.1 percent, at 5,955.69. Automaker Renault (PRNO) climbed 6.5 percent, after winning U.S. regulatory approval for the sale of its truck unit to Sweden's Volvo and garnering upbeat comments from Merrill Lynch. 
Frankfurt's electronically traded Xetra Dax closed up 1.39 percent to 6,479.28. Deutsche Telekom (FDTE) climbed 4.4 percent after saying it expects 25 million people in Germany to own mobile phones by the end of 2001, up from between 19 million and 20 million this year.
Elsewhere, Amsterdam's AEX index rose 1.1 percent, the SMI in Zurich added 1.2 percent, and the MIB30 in Milan jumped 2.2 percent, as telecom investment vehicle Tecnost rose 6.1 percent, rebounding in part from a drubbing it suffered a day earlier.
 click here for the biggest movers on the ftse 100 in London
 click here for the biggest movers on the dax 30 in Frankfurt
 click here for the biggest movers on the cac 40 in Paris
The pan-European FTSE Eurotop 300, a broad index of the region's largest stocks, climbed 1 percent, with its oil and gas segment rising 2.2 percent and the information technology hardware sub-index up 1.6 percent.
As European markets closed, the Nasdaq composite index was up 1.5 percent, while the Dow Jones industrial average inched up 10.61 points to 10,656.03.
Investors were on watch for a U.S. Federal Reserve meeting later on Tuesday, at which many economists expect the central bank to shift its current bias in favor of tightening interest rates toward a neutral policy slant as signs of U.S. economic cooling crop up.
In the currency market, the euro traded at 89.02 U.S. cents, down from 89.52 cents in New York late Monday.
Telecom stocks rung up
Among telecom sector risers, France Telecom (PFTE) rose 1.9 percent, after selling its 1.8 percent stake in Deutsche Telekom for $2.8 billion, while Spain's Telefónica jumped 3.3 percent.
French utility and telecom conglomerate Bouygues (PEN) fell 1.5 percent, paring an earlier loss of more than 2 percent. The company said Monday it is seeking to borrow  6 billion ($5.4 billion) to pay for a French third-generation mobile-phone license and to fund network investment.
Swedish mobile-phone maker Ericsson added 1.8 percent. In Italy, telecom holding company and Tecnost parent Olivetti rebounded 2.3 percent, a day after it fell 10 percent following an announcement of plans to raise up to 3 billion debt issuance and equity.
But there were pockets of weakness in the telecom sector. French telecom equipment maker Alcatel (PCGE) dropped 1.5 percent after Goldman Sachs said it recommended cutting exposure to the stock, and British Internet data carrier Energis (EGS) fell 3.8 percent in London.
Finland's Nokia, the world's biggest maker of cellular handsets, rose 1.8 percent, reversing an earlier 2.7 percent loss.
Elsewhere among technology hardware makers, Franco-Italian chip company STMicroelectronics (PSTM) rose 4.7 percent, German electronic component maker Epcos (FEPC) gained 2 percent, and French consumer electronics firm Thomson Multimedia (PMMB) climbed 4.5 percent.
EADS gets airborne
The CAC 40 got a lift from aerospace company EADS (PEAD), which gained 3.6 percent, after the European Union disputed U.S. claims about unfair subsidies to its plane-making unit Airbus. BAE Systems (BA-), which holds the 20 percent of Airbus not owned by EADS, rose 1.9 percent in London. 
EADS also announced, as expected, that it will put into production the A3XX superjumbo, poised to become the world's largest airliner, at an estimated cost of $10.7 billion.
French defense contractor Thales (PHO), formerly known as Thomson-CSF, dropped 1.7 percent in Paris.
In the oil sector, Amsterdam-listed Royal Dutch Petroleum, which owns 60 percent of Royal Dutch/Shell, rose 4.5 percent after announcing Monday a new strategy to boost its cash levels, while traders said Morgan Stanley might raise its recommendation on the stock. Its U.K. affiliate Shell Transport &Trading (SHEL) jumped 4.2 percent in London.
France's TotalFina Elf (PFP) gained 2.2 percent.
Bank stocks were mixed. Germany's HypoVereinsbank (FHVM) shed 3.3 percent, the biggest loser on the Dax. France's Credit Lyonnais (PCL) fell 1.1 percent.
However, in London, Royal Bank of Scotland (RBOS) rose 3.8 percent and mortgage bank Halifax (HFX) added 4.4 percent and global bank HSBC Holdings (HSBA).
Also in London, media stocks retreated. Broadcaster Carlton Communications (CCM) fell 3.1 percent and publisher Reed International (REED) shed 3.4 percent. France's Vivendi Universal [
-- from staff and wire reports 
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