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Europe ends higher
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June 5, 2001: 12:18 p.m. ET
Techs get Nasdaq boost, telecoms encouraged by mobile news
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LONDON (CNN) - Europe's major bourses ended higher on Tuesday, with technology stocks encouraged by early advances on the Nasdaq.
Telecom stocks also rose, boosted by the German regulator's decision that debt-laden mobile phone companies could roll out joint networks to save on costs.
Mobile phone and network equipment suppliers Nokia and Ericsson were 5 percent and 4.5 per cent higher respectively. Vodafone Group (VOD), the biggest operator, rose 4.5 percent.
Vodafone helped to push up the FTSE 100 index by 65.9 points, or 1.1 percent, at the close, reaching 5,922.5. Telecom equipment maker Marconi (MONI) was up 4 percent and network operator Energis (EGS) rose 4.8 percent.
In Paris, the CAC 40 blue-chip index was 1.5 percent higher by the close at 5,516.27. Chipmaker STMicroelectronics (PSTM) soared 6 percent after BNP Paribas raised the stock to "outperform" from "neutral". IT consultant CAP Gemini (PCAP) was up 4.1 percent and wireless operator Orange (PORA) added 3.6 percent.
Frankfurt's electronically traded Xetra Dax was 0.9 percent higher in late trading, with Europe's biggest software group, SAP (), rising 3.7 percent as investment bank Goldman Sachs upgraded the stock.
The AEX index in Amsterdam put on 1.7 percent, with chip equipment maker ASM Lithography up 3.5 percent and semiconductor and consumer electronics maker Philips putting on 5.2 percent. The SMI in Zurich was 0.9 percent higher and Milan's MIB30 index rose 1 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up just over 1 percent, with the information technology sector up 3.8 percent and the computer services sub-index rising 2.5 percent.
In the U.S., the Nasdaq composite index had risen 2.6 percent by mid-morning to 2,211.83, while the Dow Jones industrial average gained 19.72 points, or 0.2 percent, to 11,081.24.
Tech stocks were encouraged by a statement from network equipment maker Lucent Technologies that said it expects its sales to rise despite market weakness. Semiconductor shares were helped by specialty chip maker Xilinx announcing that order cancellations and delays had slowed.
In the currency market, the euro was above its latest six-month low, fetching 84.95 U.S. cents compared with an earlier low of 84.20 cents. The euro came under renewed pressure after euro zone finance ministers played down the prospect of intervening to prop up the ailing currency.
The Organization of Petroleum Exporting Countries agreed in Vienna to keep oil output unchanged despite Iraq halting supplies over disagreements about the United Nations oil-for-food programme.
Brent crude futures for July delivery fell 8 cents to $29.18 on London's International Petroleum Exchange. There are fears high crude prices would increase the burden on companies in greater energy and transport costs.
In other news, French drug company Aventis (PAVE) fell 1 percent after saying that U.S. regulators tentatively approved its experimental antibiotic Ketek for three types of infections.
Europe's second-largest semiconductor maker, Infineon Technologies (FIFX), slipped more than 3 percent at the prospect of more of its stock coming onto the market in a public offering, but later recovered in the general tech rally to be 0.2 percent higher.
Swissair, the Zurich-based airline company, rose 2.3 percent after saying it plans a major restructuring and job cuts to turn the airline around after it posted record losses.
UK rail network operator Railtrack (RTK) slumped nearly 17 percent ahead of the group's expected ejection from the blue-chip index on Wednesday.
British retailer GUS (GUS) rose nearly 2 percent in London after posting higher-than-expected full-year earnings and saying its plans to partially float its fashion house Burberry within the next 12 months was on track.
British cable company Telewest (TWT) fell 2.9 percent after reporting a wider first-quarter pretax loss of £208 million but continued growth in underlying earnings. 
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