Europe holds onto gains

February 11, 2002 Posted: 1727 GMT

LONDON (CNN) -- European markets held onto their midday gains on Monday, led by techs, telecoms and media stocks amid signs of an economic recovery.

London's FTSE 100 climbed 0.7 percent to 5,161.8 and the CAC 40 blue chip index in Paris was little changed at 4,353.21, while Frankfurt's electronically traded Xetra Dax was up 2 percent to 4,929.4 in late trading (the German exchange closes at 1900 GMT).

Market Movers

FTSE 100 / FTSE 250 DAX 30 / DAX 100 CAC 40 / SBF 80

The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 0.9 percent, with auto stocks among the main losers so far in the session.

Vivendi Universal (PEX), Europe's biggest media group, rose 2.6 percent after it reported 2001 sales just above expectations of 57.36 billion euros ($49.9 billion) and predicted sales growth of more than 10 percent in 2002.

French media group Lagardere (LAGA) jumped 2.3 percent -- but off its highs -- after saying its 2001 sales rose to 13.3 billion, from 12.2 billion in 2000, which was above the consensus forecast of just under 13 billion.

The telecoms sector got a lift after Morgan Stanley raised its rating for  Deutsche Telekom (DTEG). The German telecoms group jumped 6.3 percent, while France Telecom (FTE) was up 3.2 percent -- down from earlier highs in the session -- and BT Group, the UK telecoms giant, rose 3.1 percent.

Dassault Systemes climbed 5 percent after Deutsche Bank said it had added the French software company it to its European Focus List of top stock picks.

Among the closely watch stocks in Europe, Ericsson, the world's biggest supplier of high-speed mobile networks was up 5 percent, while Nokia, the world's biggest mobile phone operator, rose 3.2 percent.

In the tech sector, Cap Gemini (PCAP), Europe's biggest computer services company, rose 3 percent.

French aerospace giant EADS (PEAD) climbed 2.1 percent on news of a large order for its Airbus passenger jet plane maker.

Meanwhile, auto stocks took a hit over concerns that Britain's Rolls-Royce (RR) was the latest victim of the so-called "Enronitis" after negative comments in the media about the group's accounting practices. Rolls-Royce shares were down 5 percent in London. French carmaker Renault (RENA), which fell 3 percent, reports it second-half results on Tuesday. 

Among Europe's smaller markets, Amsterdam's AEX index was up 1.4 percent, while Milan's MIB30 index was down 0.3 percent and the SMI in Zurich edged up 0.5 percent.

Market Movers

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In the U.S. on Monday, blue-chip stocks moved forward in early trading, getting a boost from an announcement by DuPont (DD: up $1.95 to $44.67, Research, Estimates) that it's forming a new textile unit that might be spun off as an IPO.

Some of the worst worries about the accuracy of corporate bookkeeping eased on Friday when stocks snapped a five-session losing streak. But the issue will be revived on Tuesday, when congressional hearings resume into the collapse of energy giant Enron (ENRNQ: Research, Estimates).

In mid-morning trading, the Nasdaq composite rose 1 points, or 0.4 percent, to 1,825.9, while the Dow Jones industrial average was up 46.22 points, or 0.5 percent, at 9,790.46.