European bourses moved lower for the second day running, hit by weak bonds and another bad day for the euro. The FTSE Eurobloc 100 index shed 0.4 per cent at 1,131.92. The FTSE Eurotop 100 came off 0.9 per cent at 3,124.88 and the broader FTSE 300 lost 0.7 per cent at 1,357.77.
Frankfurt finished 24.40 lower at 5,588.50 on the Xetra Dax index. Allianz had a volatile session. A press story that it was in talks to buy a US fund management group for up to #5 billion initially sent the shares down to #286.50. But later news that the insurer planned a share buy-back repaired the damage and the stock ended up #2.50 at #292.80.
Mannesmann lost ground. A press report suggesting it was a frontrunner in the bidding for British cellular operator One-2-One UK was given short shrift after Morgan Stanley Dean Witter took the shares off its fresh money buy list. The stock ended down #3.25 at #150.75.
Software leader SAP came off #20 at #392.13 to slide to the bottom of the European performance charts as rumours of a broker downgrade ran round the market.
Paris edged down, with investors marking time ahead of important news about the prospects of several high-profile blue-chip stocks. The CAC 40 index shed 30.31 at 4,662.20.
The main focus of interest was Elf Aquitaine's response to Monday's #42 billion hostile bid from rival oil group TotalFina. Elf fell #2 or 1.1 per cent to #178.90, while Total ended #3.50 or 2.6 per cent lower at #131.
Investors in the banking sector spent the day awaiting a regulatory authority ruling, expected after the market closed, on the complex takeover dispute between BNP, Societe Generale and Paribas. BNP climbed #1.80 or 2.4 per cent to #76.40, Paribas rose 50 cents to #107, while SocGen finished 20 cents down at #163.10.
Amsterdam was pushed lower by weakness among the broad mix of heavyweight stocks. The AEX index ended off 2.25 at 579.01. ABN Amro lost 20 cents at #21.60 in spite of news of European streamlining plus talk of links with Deutsche Bank, subsequently denied. Aegon shed 85 cents at #72.95.
Milan pulled back from Tuesday's closing high for the year and the Mibtel index gave up 58 to end at 25,362. Tecnost put on 4.8 per cent to #2.67 on increased demand from foreign investors, particularly in the US. Among banks, Banco di Napoli bucked a weak trend, ending 1.2 per cent higher at #1.27. UniCredito dropped 4 per cent to #4.40 after the Consob watchdog asked the bank's three key investor foundations for an explanation of Deutsche Bank's interest in the Italian bank's capital.
