European markets recover

February 13, 2002 Posted: 1810 GMT

LONDON (CNN) -- European markets rebounded to end in positive territory on Wednesday, supported by auto stocks and early gains on Wall Street.

London's FTSE 100 edged up 0.4 percent to 5,153.9 and the CAC 40 blue chip index in Paris rose 0.6 percent to 4,364.45 while Frankfurt's electronically traded Xetra Dax was up 0.8 percent to 4,924.61 in late trading (German markets close at 1900 GMT).

The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, rose 0.8 percent, with the mining and steel sectors also higher. Media and telecoms stocks were among the decliners.

Market Movers

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

French car maker Renault (PRNO) jumped 5.5 percent, despite reporting a 77 percent drop in operating profit. However, it posted net stable income that was in line with expectations, thanks to a dramatic turnaround at partner Nissan Motor. Rival PSA Peugeot Citroen (PUG) rose 2.5 percent after reporting a 29 percent rise in net profit of 1.7 billion euros.

That helped boost other auto stocks, with German-American car maker DaimlerChrysler (DCXG) rising 2.6 percent and Volkswagen (VOWG) adding 2.5 percent in late trading in Frankfurt.

In the airline sector, British Airways (BAY), Europe's biggest carrier, slipped 4 percent after announcing plans to cut a further 5,800 jobs as part of its restructuring drive, while Germany's Lufthansa (LHAG), Europe's No. 2 airline, was up 5 percent in late trading.

UK food and beverage group Cadbury Schweppes (CBRY) was the top gainer in London, jumping 4.8 percent after reporting a 12 percent increase in 2001 profit.

Meanwhile, telecom stocks declined after Canada's Nortel Networks painted a bleak sales forecast on Tuesday and said it would struggle to meet first quarter targets. That added to a generally pessimistic outlook for the sector. 

Among the sector's losers on Wednesday, France Telecom (FTE) fell 3.3 percent, while Deutsche Telekom (DTEG) was down 0.4 percent – off its session lows – in late trading.

UK telecoms giant Cable & Wireless (CW) fell 4.4 percent after the Financial Times reported the group had admitted to using controversial, though legal, accounting techniques.

The media sector was also mainly lower, after Rupert Murdoch's News Corp trimmed its outlook for 2002. British Sky Broadcasting (BSY), Europe's No. 2 pay-TV company, which is 36 percent owned by News Corp, fell 3 percent. Vivendi Universal (PEX), Europe's biggest media company, lost 0.8 percent.

Britain's biggest commercial broadcaster Granada (GAA) dropped 5.2 percent, while France's TF1 (PTFI) slipped 0.3 percent and WPP (WPP), the world's second-largest advertising company, recovered from earlier losses to close up 0.3 percent in London.

Among Europe's smaller markets, Amsterdam's AEX index rose 0.8 percent, while Milan's MIB30 index added 1.7 percent and the SMI in Zurich rose 1.3 percent.

Market Movers

TechMark 100 Nemax 50 Nouveau Marché

In the U.S. on Wednesday, markets were higher at midday after stronger-than-expected quarterly profit reports and surprisingly solid retail sales data.

Chip equipment maker Applied Materials (AMAT: up $2.58 to $47.29, Research, Estimates) and Network Appliance (NTAP: up $2.19 to $18.64, Research, Estimates), which makes data storage systems, topped Wall Street's earnings targets, both signs of a renewal in demand for new technology.

The Nasdaq composite index rose 23 points, or 1.3 percent, to 1,857, while the Dow Jones industrial average was up 123 points, or 1.3 percent, to 9,988.