Late activity reverses Frankfurt's decline

A late rally lifted Frankfurt, reversing three days of decline and sending the Xetra Dax index up 18.77 to 4,797.84 after a session low of 4,704.72.

Chemicals were active, with Hoechst hit by investors switching into Bayer following the latter's cancer treatment accord with a US group. Both company's shares were heavily traded. Hoechst came off €2.03 at €39.20, while Bayer jumped €1.55 to €32.85.

Steels were also active. Planned merger partners Thyssen and Krupp moved in opposite directions, with the former off €3.85 at €162.50 and Krupp up €1 at €125.50. Preussag jumped €10 to €439.50 in spite of denying reports that it planned to bid for First Choice, the UK holiday group.

Paris ended modestly ahead after a day spent tracking a somnolent Wall Street. The CAC-40 added 16.58 to 4,048.63.

Alcatel posted one of the best performances after it announced the acquisition of US Internet equipment maker Xylan Corp, matching similar recent take-overs by Nortel and Lucent. The stock surged €5.20 to €101.50.

Sanofi more than recouped its loss on Monday, ending €9.50, or 6.2 per cent, higher at €163.50. BNP added €3.60, or 5.1 per cent, to €74.50 after brokers cheered its 23 per cent rise in 1998 profits by raising recommendations or reiterating their positive stance.

Renault was not thanked for its better-than-expected results posted after the market closed on Monday. The share lost €3.63, or 9.1 per cent, to €36.37, a 23.4 per cent fall in six days, as investors reflected on the gloomy 1999 outlook for the European car industry. Peugeot, which reports 1998 results today, was also feeble, cutting €1.60 to €119.10.

Zurich was enlivened by a 10.8 per cent plunge in Ares Serono after the drugs group failed to win marketing approval this year for its Rebif multiple sclerosis drug in the US. The shares dropped SFr265 (€166) to SFr2,190 (€1,376) after the US Food and Drug Administration upheld the so-called `orphan' drug status of two rival MS drugs, which may keep Rebif out of the US market until 2003.

Amsterdam ended off 1.22 at 526.09 on the AEX index.

Milan failed to sustain a late foray into positive ground as Wall Street ventured higher and the real-time Mibtel index finished 63 weaker at 23,746.

Madrid was little moved after a handful of shares registered sharp gains or losses on the basis of 1998 results. The general index finished 1.13 weaker at 877.01.