Negative trend reversed as tech stocks revive

Individual shares in Paris suffered some big falls, but the overall market stayed positive as the Nasdaq's rise helped tech stocks. The CAC-40 index closed 7.57 higher at 6,529.25.

The winners were Bouygues, Cap Gemini and France Telecom. Construction and telecoms group Bouygues rose 2.5 per cent to €65.50 ahead of its results, released after the market closed. IT services company Cap Gemini rose 3.7 per cent to €224 and France Telecom gained 2 per cent to €125.50.

The rest of the picture was dominated by negative corporate news. Car parts maker Valeo plunged 11.9 per cent to €48.90 after warning that it would not achieve its forecast operating margin for 2000 of 7 per cent.

Electrical equipment company Schneider Electric fell 6.1 per cent to €74.35 in the wake of the profit warning from US automation group Rockwell on Monday.

Hotel group Accor fell 4.9 per cent to €44.50 after confirming its purchase of the hotels business of Granada Compass of the UK.

Tyre-maker Michelin closed down 1.4 per cent at €32.35, at one stage touching a two-year low of €30.10, after it reported a bigger-than-expected fall in first-half net profit.

Frankfurt traded narrowly as traders and investors kept a wary eye on the foreign exchanges. With the euro probing fresh lows, there was little incentive to chase share prices and the market mostly moved sideways in moderate trading volume.

Technology sectors had their share of weak spots in spite of the early rally by the Nasdaq. Epcos shed €3.40 at €97.60 and Siemens came off €4.85 at €170.15.

The Xetra DAX index was 6.43 better at 6,898.12 at 5.30 p.m. German time.

Amsterdam edged lower, with steep falls for telecoms leader KPN and Corus, the metals group formed out of the merger of British Steel and Hoogovens, dictating the broad trend.

KPN shed €1.13 at €26.57, while Corus tumbled to a fresh low for the year as a profit warning from US aluminium giant Alcoa sparked selling. The stock ended off 7 cents, or 6.8 per cent, at 96 cents.