European markets closed mostly higher despite an early sell-off on Wall Street that trimmed gains in the day's star performers. Frankfurt posted the biggest advance, up 1.6 per cent, helped by a brightening economic outlook and robust rises in blue chips.
Computer services stocks were unaffected by the bout of weakness in New York. The sector turned in a hefty 7.2 per cent rise on gains in France's Cap Gemini and Germany's SAP. The four-stock strong aerospace and defence sector was up 2.3 per cent on expectations that the conflict in Kosovo would boost orders.
Frankfurt pushed firmly ahead, rising 81.32 or 1.6 per cent to 5,269.12 on the Xetra Dax index. Deutsche Bank improved €1.68 to €94.44 ahead of tomorrow's first-quarter earnings statement. Software leader SAP was the day's best performer, adding €27 at €350.
Deutsche Telekom rallied modestly, adding 52 cents at €35.89 before today's meeting between German and Italian officials as it pushes forward with its plans to merge with Telecom Italia. An upgrade to "outperform" at WestLB Panure also helped to boost sentiment. Lufthansa was a clear casualty, slipping 96 cents to €22.19 after the airline warned of a negative earnings impact of the Kosovo crisis.
Paris got an early boost from robust performances in oil, high-tech and defence stocks. But the CAC-40 index later lost some momentum to finish 21.97 or 0.5 per cent ahead at 4,284.40 after a 2.7 per cent fall last week.
Volatile Thomson-CSF was among the day's biggest risers, adding €1.20 to €28.25. Traders said rising expectations that NATO would commit ground troops to Kosovo were behind the rise.
In the technology sector, Cap Gemini added €8.60 or 6.50 per cent to €141 after its chairman said he was considering a US acquisition to increase the company's range of products. Elf-Aquitaine rose sharply on newspaper reports that the French government was seeking to merge it with its rival Total.
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