Wall Street uncertainty fails to inhibit Zurich

A powerful run by the UBS banking giant allowed Zurich to finish 46.8 better at 7,216.8 on the SMI index in spite of Wall Street's uncertain opening. UBS racked up gains close to 3 per cent at one stage on rumours ranging from a big property disposal to a take-over approach in the shape of an "ambitious bid" from outside Switzerland.

The disposal was eventually confirmed but the other rumours remained simply that. UBS ended 11 Swiss francs higher at SFr483 in turnover that totalled SFr498 million. In drugs, Novartis added SFr17 at SFr2,407. Distefora jumped SFr9.50 to SFr88.50 and Kudelski SFr435 to SFr6,640.

The FTSE Eurotop 300 index rose 9.85 or 0.77 per cent to 1,284.20.

Frankfurt ran into profit-taking late in the day to close with the Xetra Dax 4.98 higher at 5,027.25. This was 36 points short of the benchmark's high for the session. Retailers were resilient, helped by sector consolidation stories and the period of relative under-performance that the sector has endured. Hopes for an interest rate cut today from the European Central Bank also boosted sentiment.

Karstadt, which touched 353 at one stage, ended €18.40 or 5.5 per cent higher at 346.98, while Metro added 1.25 at 60.70.

Deutsche Telekom gained 50 cents to €39.90 after positive comment from brokers. Siemens was said to have met with technology-driven buying, improving €1.05 to €62.25.

Paris rose steadily in the morning before running out of steam in the last minutes of the session. The CAC-40 closed 13.56 higher at 4,318.04, a fresh 1999 record but still off its life high of 4,388.48, reached last July.

Strength in France Telecom, the largest constituent in the CAC-40, helped sustain the positive momentum. Shares closed €1.45 higher to €81.35. Strong March sales figures from Carrefour, coupled with rumours of sector consolidation, sent retail issues sharply higher. Carrefour rose €1 to €715, while Casino added €4.40 or 5.4 per cent to €86.50 and Promodes gained €33.50 or 5.8 per cent to €616.

Volatile Bic, the lighter and pen manufacturer, jumped after SG Securities added the stock to its model portfolio. The share rose 69 cents to €49.19. Accor, which was dropped from the list, ended €6.80 lower at €219.80.