Results news help markets to climb

Paris Cac-40: 3,714.81 (+136.4); Frankfurt Dax: 4,893.51 (+138.86)

Results optimism got behind Paris, which staged its best oneday rally for almost four weeks.

In moderate volumes, the CAC40 index pushed up 136.4 or 3.8 per cent to 3,714.81, helped by strong gains by market heavyweights France Telecom and Renault, both of which announce first-half results today.

France Telecom rose 28 French francs or 6.4 per cent to Ffr466 in turnover of Ffr957 million ahead of Thursday's interim results, which some analysts suspect may be accompanied by news of the government's planned sale of further shares in the company.

Car stocks, which were given a boost last week by strong first-half numbers from Peugeot, also rallied ahead of results announcements.

Frankfurt rose 138.86 or 2.9 per cent to 4,893.51 on the Xetra Dax index. Man topped the performance charts. The truck and machinery maker, which surged 12 per cent a week ago on strong results, gained a further 45.50 deutschmarks at DM560.50.

Financials found selective demand. Deutsche Bank gained DM3.70 to DM103.70, while HypoVereinsbank jumped DM12.10 to DM135.80.

Amsterdam saw some switching out of bonds, but the main boost to sentiment came from a rally for financials, and by the close the AEX index which fell nearly 6 per cent last week was up 23.24 at 1,033.66.

Madrid was led by the recovery in shares with business ties to Latin America. The general index rose 16.89 or 2.4 per cent to 711.43.

Last week's steep interest rate rise in Brazil supported exposed shares, with banks, insurers and Telefonica gaining ground.

Milan was led by a rally in bank shares, and the Mibtel rose 858 or 4.5 per cent to 20,064.