Kosovo peace hopes keep equities steady

Hopes for a peace deal in Kosovo countered an uncertain day for bond markets in Europe and allowed equities to stay positive …

Hopes for a peace deal in Kosovo countered an uncertain day for bond markets in Europe and allowed equities to stay positive through a narrowly traded, low-volume session.

The FTSE Eurobloc 100 index ended 0.4 per cent higher at 1,071.54. The FTSE Eurotop 100 index hardened 0.3 per cent at 3,036.06 and the broader FTSE Eurotop 300 index improved 0.2 per cent to 1,314.47.

Frankfurt ignored bond market wobbles to end modestly higher. Bunds took defensive action at a 15-month high for the US 30-year benchmark yield, but equities gained ground in moderate volumes, adding 53.70 at 5,250.63 on the Xetra Dax index.

Commerzbank featured at the top end of the FTSE Eurotop 300 performance charts, rising €1.50 to €29.30. Deutsche Telekom was well bid for the third time this week. The shares added €1.72 at €43.35 to extend their rally this week to 11 per cent. Motors were enlivened by BMW, which rose €23 at €660, and truck maker MAN, where buying sent the shares up €1.07 at €31.65.

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Paris firmed despite nerves about the US, lifted by strong rises in several blue-chip stocks. The CAC-40 index rose 14.81 or 0.3 per cent to 4,422.39.

STMicroelectronics, the semiconductor company, put in another powerful performance as Morgan Stanley Dean Witter increased its price target and raised the stock's status to "outperform". STM has been one of Europe's best-performing stocks over the past eight months, rising 283 per cent.

Alcatel, the telecommunications company, ended a period of weakness as investors responded positively to recent mobile phone infrastructure contract successes. The stock closed €6 or 5.1 per cent higher at €123.

Amsterdam ended 2.04 higher at 568.74 on the AEX index in a low-volume session. Trading was narrow with a €1.35 rise to €65.50 for Unilever one of the few highlights.

Hoogovens continued to unwind gains built up as a result of the take-over bid from British Steel, slipping a further €1.15 at €42.40.

Gucci, currently fighting off an unwelcome take-over approach from French luxury goods giant LVMH, jumped to €64.45 after unveiling strong first-quarter earnings. Subsequent broker reaction to the figures left the shares up a bare 30 cents at €60.90 at the close.

Milan closed little changed as bank stocks held the market up in spite of the weak start on Wall Street. By the close, the Mibtel index was 9 weaker at 24,645.

Madrid had a mixed day as financial stocks dominated trading. The general index closed 1.84 or 0.2 per cent higher at 906.22.