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Bourses pause for breath
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January 7, 1999: 7:20 a.m. ET
Subdued trading in Europe, after bumper gains in recent days
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LONDON (CNNfn) - A more sober mood took European investors in early trade Thursday. Bourses moved in different directions, but the buying enthusiasm which characterized Wednesday's trading has dried up.
Asian markets played catch-up overnight, and Wall Street finished, as expected, at a record high. However, investors were unnerved by the debt default of one of Brazil's largest regions, fearing more crises in emerging markets.
In London the FTSE 100 was holding steady at 6,152.3, virtually unchanged. Other markets were some 1 percent lower.
In Frankfurt the Xetra Dax eased 1.5 percent, 81 points, to 5,362.04, while in Paris the CAC 40 slipped 44 points to 4,250.87. Zurich's SMI was 1 percent lower at 7,588.9.
Trading was quiet in London, compared with the recent bout of frenetic activity. Many investors were said to be sitting on their hands until the Bank of England's rate-setting committee announces the results of its deliberations at 1200GMT.
Cable operator Telewest (TWT) gained 5 percent to 212 pence, after Cox Communications (COX) sold its entire 12 percent stake in the U.K. group for $740 million.
In Frankfurt most stocks headed gently lower, as dealers chose to lock in some of the market's recent gains. BMW (FBMW) slipped 23 euros to 717 euros, as speculation of a takeover offer died down. Banking stocks remained at the top of the tree, with Deutsche Bank (FDBK) and Dresdner Bank (FDRB) both in the plus column.
Software maker SAP (FSAP3) continued its recovery, after a collapse earlier in the week. The shares gained 4 percent to 353 euros.
News from the auto sector provided the highlight in Paris. Components group Valéo (PFR) announced that 1998 revenues had risen 16 percent. That said its shares up 7 percent to 67.4 euros. Renault (PRNO) also announced sales numbers, but the 16 percent rise in the number of cars it sold during 1998 had little effect on the market. Renault shares were flat at 43 euros.
Improved sentiment toward the steel industry helped Usinor (PUSI) to gain 5 percent to 11 euros.
In Sweden more speculation over a bid for Volvo helped the car maker's shares to rise almost 4 percent to 220 Swedish crowns.
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