Paris bucks the downward trend

Frankfurt was little changed after visiting both positive and negative territory in thin trade. The Xetra Dax index finished 2.94 weaker at 4,466.18.

Hoechst picked up from a low for the year of DM57.31 to close 30 pfennigs higher at 61.10 deutschmarks in spite of news late on Friday that a deal to sell its coatings business had failed.

The chemicals group said that negotiations over the sales of its Herberts coatings business to US takeover specialist Kohlberg Kravis Roberts had fallen through because of differences over the price.

Paris edged marginally ahead after a day in which the market appeared to pause for thought. The CAC 40 index picked up 5.25 to 3,395.35, off a mid-session high of 3,426.76.

Turnover was thin at about 6.8 billion Franch francs.

Paribas was in the spotlight early in the session after chairman Mr Andre Levy-Lang was quoted as saying that 1998 profit would be similar to 1997.

Uncertainty over corporate earnings and profit-taking after last week's rally contributed to directionless trading in Milan, where the Mibtel index, 15 per cent higher last week, closed up 98 to 19,393.

Political uncertainty also weighed on shares as Mr Massimo d'Alema, the leader of the Democratic Left party, tried to assess the level of support to command a majority in the lower house.

Amsterdam closed lower as profit-taking eroded last week's options-related gains. The AEX index lost 11.29 or 1.2 per cent to 941.44.

Most financials lost ground with ING down 2.10 guilders or 2.4 per cent to Fl85.90 after reports of another resignation of a senior executive. Fortis Amev fell Fl0.10 to Fl108.90. ABN Amro, however, closed up 50 cents at Fl32.90.