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Tech lift revives Europe
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January 11, 2001: 1:13 p.m. ET
Dax rises about 2% as SAP, banks gain; telecom, oil stocks lift Paris and London
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LONDON (CNNfn) - Europe's markets closed higher Thursday as telecom stocks rallied in London and Frankfurt's index got a lift from banks and continued gains for software maker SAP.
London's benchmark FTSE 100 index closed up 55 points, or 0.9 percent, at 6,114.9. Among index heavyweights, oil producer BP Amoco (BPA) rose 3.6 percent and mobile phone firm Vodafone Group (VOD) climbed 4.3 percent.
In Paris, the blue-chip CAC 40 also ended up 0.9 percent, rising 49.43 points to 5,702.78. Network operator Equant (PEQU) jumped 7.5 percent and TotalFina Elf (PFP) added 2.5 percent. 
In Frankfurt, the Xetra Dax closed up 145.14 points, or 2.3 percent, to 6,465.21. SAP (FSAP), Europe's biggest software firm, jumped 8.2 percent, taking its gain this week to more than 40 percent in the wake of strong revenue numbers Monday.
In other European markets, Amsterdam's AEX index added 1.1 percent, with chip equipment maker ASM Lithography up 5 percent, and Zurich's SMI gained 0.2 percent. In Milan, the MIB30 rose 1.6 percent as telecom holding company Olivetti jumped 7 percent.
The broader FTSE Eurotop 300 index, a basket of Europe's largest companies, rose 0.95 percent, with the technology hardware sub-index climbing 4.3 percent thanks in part to a 6.4-percent gain for Finnish mobile phone maker Nokia and a 7.1-percent gain for Swedish rival Ericsson.
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In the currency market, the euro strengthened against the dollar to 95.26 U.S. cents from 93.60 cents in late trading in New York a day earlier. The British pound fetched $1.4968, up from $1.4865 late Wednesday, after the Bank of England held its key interest rate steady at 6 percent.
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U.S. markets were mixed as bourses closed. The tech-laden Nasdaq composite rose 2.4 percent, adding to a 3.4-percent gain a day earlier, while the blue-chip Dow Jones industrial average was down 8.95 points to 10,595.32.
Techs, telecom firms bound up
In the resplendent tech and telecom sector, U.K. search systems provider Autonomy (AU-) rose 17 percent Thursday as investors digested a contract win with Finnish telecom company Sonera.
Telecom and cable operator Telewest Communications (TWT) gained 8.7 percent on revived talk about a possible bid from U.S.-listed cable firm NTL (NLI: Research, Estimates). British Telecommunications (BT-A) rose 4.4 percent. 
Germany's Deutsche Telekom (FDTE) jumped 3.7 percent.
In the Internet sector Germany's T-Online International (ATOI), Europe's largest Internet service provider and a subsidiary of Deutsche Telekom, shed 3 percent after U.S. Internet portal Yahoo! released a profit warning after the U.S. market closed Wednesday.
In the drug sector, German drugmaker Schering (FSCH) jumped 5.4 percent amid talk that Swiss rival Roche Holding is considering buying the firm. Roche declined to comment.
Elsewhere, Franco-German drug firm Aventis (PAVE) rose 2.6 percent and Britain's GlaxoSmithKline (GSK) rose 2.5 percent. Germany's Bayer (FBAY) added 1.6 percent.
Retailers feel seasonal sting
Retailers were hurting on European exchanges amid the latest batch of sales numbers for the holiday shopping season. Great Universal Stores (GUS) sank more than 15 percent, the FTSE's weakest member, while Germany's Karstadt Quelle (FKAR) dropped 4.5 percent.
In Germany's banking sector, Deutsche Bank (FDBK) climbed 4.3  percent. Traders said Merrill Lynch raised its rating on the stock; analysts at the investment bank weren't immediately available for comment. Commerzbank (FDRB) rose 3.2 percent.
British bank Barclays (BARC) rose 1.3 percent following a report in the Independent newspaper that it is in talks with the U.K.'s third-largest life insurance and pensions company, Legal & General Group (LGEN), about marketing L&G's stakeholder pensions at its branches. L&G shares closed down 4.3 percent.
In the French banking sector, Société Générale (PGLE) rose 3 percent and rival BNP Paribas (PBNP) clambered up 2.9 percent.
German carmakers continued their recent slide. BMW (FBMW) shed 2.8 percent and Volkswagen (FVOW) slipped 1.9 percent, although truck maker MAN (FMAN) gained 4.6 percent.
German electricity and water utility RWE (FRWE) rose 2.7 percent.
-- from staff and wire reports 
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