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Bourses say 'happy holidays'
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December 23, 1998: 1:09 p.m. ET
European markets break up for Christmas with presents for investors
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LONDON (CNNfn) - European markets broke for a four-day Christmas holiday in a festive mood Wednesday, with all the main indexes in the black.
The indexes made gains of up to 2 percent, boosted by a rising market in New York, although dealers warned that volumes were extremely light, exaggerating the upward trend.
In London the FTSE 100, which trades for half a day Thursday, closed at its highest level for five months at 5,908.8, up 65.5 points, or 1.1 percent.
Germany's Xetra Dax really caught the festive bug, gaining 2 percent, 99.15 points, to close a foreshortened week at 4,978.62.
Gains in Paris and Zurich were more modest, with the CAC 40 rising 1.4 percent to 3,872.42 and Switzerland's SMI gaining 1 percent to close at 7,160.8.
Mainland Europe stock markets are closed Thursday and Friday.
Italy's IBEX gained 2 percent Wednesday, and after the close the Bank of Italy lowered interest rates by 50 basis points to 3.0 percent. Rates are now in line with levels in the rest of the countries participating in European Monetary Union.
Major moves among blue-chips in London were scarce. Rail and bus operator Stagecoach (SGC) was the top performer in the FTSE 100, rising 7 percent to 250 pence.
Hot on its heels were Standard Chartered (STAN), up 6 percent at 676 pence, and supermarket ASDA (ASSD), up 4 percent at 164 pence.
Investors were more interested in the developing political scandal in the United Kingdom, which forced the resignation of trade minister Peter Mandelson and Paymaster General Geoffrey Robinson.
Steel maker Usinor (PUSI) was the highlight in Paris, rising 7 percent to 62.5 francs. Financials were the strongest sector, with the likes of BNP (PBNP), CCF (PCCF) and Société Générale (PGLE) all rising by more than 3 percent.
The pressure came off oil stocks Elf Aquitaine (PAQ) and Total (PFP), and they both rose nearly 2 percent.
Auto stocks revved up the German market. BMW (FBMW) denied it was in talks with Ford (F), but powered through the session to end at 1,255 marks, up 46 marks on the day.
Volkswagen (FVOW) rose 4 marks to 135 marks, and DaimlerChrysler rose 2 percent to 157.8 marks.
Swiss banks refused to miss out on a party, and UBS gained 7 francs to 427 francs. Nestlé rose 55 francs to 2,910 francs.
In Stockholm Volvo shares closed 11 percent higher at 195 crowns, on rumors of a deal with Ford.
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