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Banks, telecoms lift Europe
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March 27, 2001: 11:14 a.m. ET
Lloyds TSB, Societe Generale lead bank winners; Ericsson surges after cut news
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LONDON (CNN) - European markets ended higher Tuesday for the third straight session, led by gains among the larger banking stocks and telecoms.
Swedish mobile phone maker Ericsson surged 8.9 percent after saying it would axe 3,300 jobs as the U.S.-led global economic slowdown begins to bite. It said expects to save $2 billion a year as it trims costs.
 London's FTSE 100 rose 2.7 percent to close at 5,728.1, led by asset manager Schroders (SDR) and Lloyds TSB Group (LLOY).
In Paris, the CAC 40 blue-chip index added 2.2 percent to finish at 5,235.60, with bank Societe Generale (PGLE) and aerospace firm EADS (PEAD) topping the leaders.
Frankfurt's electronically traded Xetra Dax rose 2.8 percent to touch 5,889.35 in late trade, with Deutsche Telekom (FDTE) and engineering to electronics powerhouse Siemens (FSIE) posting the biggest percentage gains.
Amsterdam's AEX index climbed 1.6 percent, while the SMI in Zurich edged up 0.3 percent and the MIB 30 in Milan rose 2.8 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, rose 2 percent, with the telecom index up 3.4 percent.
In the currency market, the euro slipped against the U.S. dollar to 89.34 cents from 89.63 in late U.S. trading Monday.
"The euro will continue to weaken," said Razia Khan, a currency strategist at Standard Chartered. "The ECB (European Central Bank) needs to do something (cut interest rates) to make sure euro-zone growth is not damaged by a slowdown in the U.S."
In the U.S., the Nasdaq composite index was up 2.6 percent, while the Dow Jones industrial average was 1.2 percent higher in midday trade.
Telecom, media and technology stocks "look particularly cheap at present, but markets are cautious, they're looking for a base to maintain gains," said Gordon Hodson, European equities strategist at ABM Amro.
 Telecom stocks were among the top gainers across the continent. Deutsche Telekom (FDTE) shot up 7.5 percent, France Telecom (PFTE) rose 5.7 percent, and Vodafone Group (VOD) rose 3.4 percent.
Telecom equipment makers also made strong gains. Marconi (MONI) added 5.4 percent and German communication equipment maker Siemens (FSIE) gained 4.8 percent.
Finland's Nokia, the world's biggest mobile phone handset maker, shed 4.9 percent after announcing up to 400 job cuts at its networks broadband unit.
German bank Dresdner (FDRB) rose 4.6 percent amid ongoing takeover speculation. UK asset manager Schroders (SDR) added 8.8 percent while bank Lloyds TSB (LLOY) climbed 6.8 percent. French bank Societe Generale (PGLE) added 6.4 percent.
Among the day's other corporate news, luxury automaker BMW (FBMW) jumped 4.3 percent after saying 2001 sales and earnings would grow despite the weakening global auto market.
German utility E.ON (FEOA) rose 2.8 percent. The company said net income rose 35 percent to  4.2 billion.
Elsewhere, luxury goods maker LVMH (PMC) advanced 5.5 percent and aerospace manufacturer EADS (PEAD) added 6.1 percent. 
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