European markets end higher

February 14, 2002 Posted: 1801 GMT

LONDON (CNN) -- European markets ended higher on Thursday, boosted by strong banking results and positive U.S. jobless data, which also lifted Wall Street.

London's FTSE 100 rose 1.1 percent to 5,208.7 and the CAC 40 blue chip index in Paris climbed 1.5 percent to 4,429.31, while Frankfurt's electronically traded Xetra Dax was up 0.7 percent to 4,970.04 in late trading (the German market closes at 1900 GMT).

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The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, rose 1.1 percent, with insurance and computer stocks leading the gains along with the banking sector.

Switzerland's UBS, Europe's biggest bank, added 4.5 percent after it said net income fell 24 percent to 1.106 billion Swiss francs ($652.1 million) in the last three months of 2001.

ABN AMRO, the biggest Dutch bank, rose 2.3 percent. It reported 2001 results at the top end of expectations, but gave a cautious forecast for 2002 as recent market weakness spilled over into the first half.

Shares in Britain's Barclays (BARC), the country's fourth-largest bank, ended flat after chalking up early gains. The bank said its 2001 profit was within expectations and announced a share split.

Meanwhile, among other companies reporting results on Thursday, GlaxoSmithKline (GSK), Europe's biggest drug maker, rose 1.2 percent in London. It said fourth-quarter earnings were up 14 percent on strong demand for its new asthma drug Advair.

German drug company Merck (MRCG) plunged 11.3 percent after posting fourth-quarter earnings below expectations. It also reiterated that 2002 would be a tough year due to generic competition for its Glucophage diabetes treatment.

Unilever (ULVR), the world's largest consumer goods group, slipped 1 percent in London. The Anglo-Dutch giant posted a better-than-expected net profit for 2001 on strong global sales and said underlying 2001 net profit rose 12 percent to 3.6 billion ($3.14 billion).

BAE Systems (BA), Britain's largest aerospace and defence company, jumped 4.2 percent. It reported annual earnings near the top end of expectations, despite a weaker market for civil aircraft after the September 11 attacks.

Telecom Italia, Europe's fourth largest telecom operator, gained 0.4 percent – off its highs for the session -- after it said full-year earnings before interest, tax, depreciation and amortisation grew 12.3 percent to 13.7 billion, less than the 14.4 billion analysts predicted.

Scottish & Newcastle (SCTN), the UK biggest brewer, fell 7.1 percent after saying it had agreed to buy Finland's Hartwall for 2 billion ($1.8 billion). London-listed South African Breweries (SAB) fell 3.4 percent as it rumoured possible tie-up now appeared less likely to happen.

Among Europe's smaller markets, Amsterdam's AEX index rose 1.4 percent and Milan's MIB30 index gained 1.1 percent, while the SMI in Zurich added 1.3 percent.

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In the U.S. on Thursday, markets edged higher at midday after government data showed the number of people filing for new jobless claims fell by 8,000 to 373,000 last week, remaining below 400,000 for a sixth straight week, a sign of job market stability.

The Nasdaq composite index rose 16 points, or 0.9 percent, to 1,875, while the Dow Jones industrial average climbed 31 points, or 0.3 percent, to 10,021.