The buyers returned to technology leaders yesterday, but volumes were far from robust and the buying was tentative. Most investors have their fingers crossed ahead of this week's glut of company statements.
In the US, Microsoft, IBM and Intel are all due to produce third-quarter results this week. In Europe, there are statements today from Philips and tomorrow from STMicroelectronics.
Philips jumped €1.35 to €45.50 in 27.7 million shares traded, while STM rose EllO to €53.45, helped by Nasdaq's modest advance in early trading. Telecoms found favour. Deutsche Telekom added 93 cents at €38.52 and France Telecom El at €102. KPN, trundling along at less than one-third of its March peaks, gained 47 cents to €21 .99 on news of its plans for €700 million in cost cuts over the next two years.
Equipment-makers Nokia and Ericsson were firm ahead of the latter's results on Friday. Ericsson gained €5.50 to €149.50. Internet leader Terra Networks, down 10 per cent on Friday, rallied 80 cents at 35.60. Confirmation that the global oil industry was pushing ahead with a further slice of rationalisation via the Chevron takeover of Texaco did nothing for oil stocks, for which the lead indicator remained commodity prices.
Brent Blend dribbled lower for the second session running as Middle East tensions showed signs of unwinding and investors peered ahead to November and the next OPEC meeting. There is a widespread suspicion that crude oil could be at least $10 a barrel lower by the middle of next year.
Next week's results from Conoco and Exxon Mobil will confirm the healthy trend of immediate sector earnings. The final quarter looks safe enough, but beyond that the betting among brokers is wide open. Share buy-back hopes apart, the sector has little clear direction at the moment, said Marshall Hall at Warburg Dillon Read. Total Fina Elf gave up €5 at €173.l0 and Royal Dutch 63 cents at €73.30. Eni eased 6 cents at €6.50.
German biotechnology stocks had a good day on the Neuer Markt after CyBio said strong foreign orders had enabled it to upgrade its full-year revenue forecast to €20 million from €17.6 million. CyBio was 7.5 per cent higher at €129 while GPC Biotech gained £.9 per cent to €57.20.
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