European Stocks Close Mixed
May. 31, 2000
LONDON (AP) _ European stocks closed mixed Wednesday as early technology and telecommunications gains were trimmed on the back of interest rate worries and lingering techs uncertainty.
Opening to big tech- and telecom-based gains, European bourses slipped after investors initially expressed concern over a report by the Organization for Economic Cooperation and Development saying that economic expansion could increase faster than is healthy, necessitating interest rate increases to stabilize growth.
Many bourses experienced low volume, with traders blaming Thursday's Ascension day holiday and the absence of investment from fund managers.
The oil sector also saw gains as Salomon Smith Barney pointed to positive evidence of OPEC achieving its ambition to manage oil prices in a higher range over the long term. This, the brokerage said, could lead to a new oil price dynamic resulting in a higher sustainable oil price, lower price volatility and better quality earnings.
The Dow Jones Euro Stoxx Index, which tracks companies in countries that joined the single currency, rose 2.19 points to 426.6. The Dow Jones Euro Stoxx 50 Index rose 44.8 points to 5,200.9 and the Dow Jones Stoxx 50 Index rose 27.4 points to 4940.1.
In domestic markets, London's FTSE-100 Share Index fell 0.3 point to 6,359.3 after an initial tech and telecom-based rally faded on interest rate fears.
Frankfurt's Xetra DAX Index fell 0.1 percent to 7,109.67. The Paris CAC-40 Index was up 1.6 percent to 6,426.26; Milan's MIBtel Index was down 0.5 percent to 31,195, with many telecom and tech stocks losing early gains to head into the red; and Amsterdam's AEX Index closed up 0.1 percent to 655.50.