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Europe all mixed up over Iraq
LONDON, England (CNN) -- War jitters continued to undermine European markets in midday trading on Friday as U.S. President George W. Bush insisted Iraq must be disarmed. London's FTSE 100 edged up 0.3 percent to 3,582.7 and Frankfurt's electronically traded Xetra Dax gained 0.4 percent to 2,523.45, while the CAC 40 blue chip index in Paris was little changed at 2,715.43. The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 0.1 percent. "The build-up to a possible war in Iraq is placing huge strains on global stocks markets," economists at Bear Stearns wrote in a note to investors. "But the economic costs are only now starting to shine through, with higher oil prices lifting inflation and consumer confidence peeling away. "The world economy needs to see the back of this Iraqi crisis quickly." But the United States dismissed Baghdad's decision to destroy its al-Samoud 2 missiles. Bush told USA Today newspaper that Iraqi President Saddam Hussein would have disarmed before now if he was serious about doing so. "We will disarm him now,'' Bush said. Meantime, Russian Foreign Minister Igor Ivanov said Friday Moscow is prepared to use its veto power in the U.N. Security Council to strike down a second resolution on Iraq if it were necessary for "maintaining world stability." (Full story) European bourses were subdued ahead of preliminary fourth quarter gross domestic product data from the United States due at 1330 GMT, followed by the University of Michigan's final February consumer sentiment index at 1445 GMT. In corporate news, Europe's biggest computer services group Cap Gemini (PCAP) soared 16.4 percent to 24.34 euros as it posted a worse-than-expected 2002 loss of 514 million euros. But investors cheered improved operating margin and cashflow in the second half of 2002. Italian oil and gas group ENI fell 2.4 percent to 13.84 euros after posting a 41 percent drop in 2002 profit. French insurer Axa (PCS), French oil group TotalFinaElf (PTFP) and French construction firm Vinci all fell more than 2 percent each after French utility Suez sold stakes in all three. The AEX index in Amsterdam rose 1.2 percent and Milan's MIB30 index dipped 0.2 percent, while the SMI in Zurich inched up 0.1 percent. In the U.S. on Thursday, stocks rallied as some positive economic news and a drop in the terrorist threat level heightened investors' hopes, but the Dow would need to post fairly hefty gains Friday to end the week, and the month, higher. The tech-laden Nasdaq composite rose 1.6 percent, or 20.26 points, to 1323.94; the S&P 500 index climbed 1.2 percent, or 9.73 points, to 837.28; and the Dow Jones industrial average added 1 percent, or 78.01 points, to 7884.99.
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