Europe ends high, led by techs
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LONDON, England (CNN) -- European markets held onto their gains at the end of trading on Tuesday buoyed by information technology and insurance sectors on hopes a war against Iraq could be averted.
London's FTSE 100 rose 2.5 percent to 3,669.2, Frankfurt's electronically traded Xetra Dax gained 2 percent to 2,637.2 (but was not due to close until 1900 GMT) and the CAC 40 blue chip index in Paris added 2.5 percent to 2,841.84.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 2.4 percent.
War fears eased Tuesday after Iraq said on Monday it had agreed to a key demand by United Nations weapons inspectors, prompting investors to buy up stocks that were beaten down in recent sessions.
Late on Monday, Iraq's U.N. ambassador Mohammed Aldouri said Baghdad was dropping its opposition to flights over Iraq by U-2 U.S. spy planes on loan to the U.N. for weapons inspections. At the same time, disagreements over a possible U.S.-led attack on Iraq are growing among NATO members -- adding to speculation that an attack could be delayed or called off. (Full story)
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SPECIAL REPORT
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Insurance stocks held onto midday gains. German reinsurer Munich Re (FMUV2) jumped 7.5 percent to 80.55 euros, after falling in the previous session when Merrill Lynch warned the firm's 2002 and 2003 earnings could be less than expected.
German insurer Allianz (FALV) added 3 percent to 67.75 euros and France's Axa (PCS) gained 6.7 percent to 11.12 euros.
BP (BP-) rose 3.7 percent to 393.50 pence after it announced a $6.75 billion deal with Russian group Tyumen Oil (TNK) to create the country's third largest oil and gas company. BP also posted a 49 percent rise of fourth quarter profits. (Full story)
Philips Electronics, Europe's largest maker of consumer electronics and lighting, gained 5.7 percent to 15.29 euros after the Dutch group posted a higher-than-expected net loss for 2002 and said it expected little short-term improvement in the economic conditions. (Full story)
The AEX index in Amsterdam rose 3.5 percent, Milan's MIB30 index added 2.8 percent and the SMI in Zurich gained 2.4 percent.
In the U.S. on Tuesday, stock markets marched higher at opening on hopes that a war with Iraq may be averted but Wall Street was working to discern the message behind Federal Reserve Chairman Alan Greenspan's remarks to Congress on the health of the U.S. economy. (Full story)
The Dow Jones industrial average was up 14.74 points to 7934.85, the Nasdaq composite gained 9.45 points to 1306.13 and the S&P 500 index rose 2.15 points to 838.12.
