War Helps European Major Stocks High

Home>>World

Last updated at: (Beijing Time) Saturday, March 22, 2003

War Helps European Major Stocks High

Developments of Iraq war helped major European stocks closed at their best highs for weeks as financials and techs, among others, saw an across-the-board bounceFriday.

DISCUSSION

CHINESE

SEND TO FRIEND

Developments of Iraq war helped major European stocks closed at their best highs for weeks as financials and techs, among others, saw an across-the-board bounceFriday.

Volume was relatively good and dealers said activity was boosted by double- and triple-witching across the region, buoyed by the advances of the US-led military operations in Iraq.

In London, British blue chips rolled to a two-month high, led by financials like Royal & Sun Alliance, as a US-led advance on Baghdad met little resistance and raised hopes for a short Iraq war. The FTSE 100 benchmark index ended up 95.4 points or 2.5 percent to 3861.1, up 259.3 from March 14.

In Frankfurt, the German DAX higher as Deutsche Bank and Siemens teamed up with a majority of rallying blue chips. The DAX index closed up 4.23 percent or 110.21 points to 2715.06 points, rising 311.87 points from last Friday.

In Paris, French shares rose, strong gains in insurer Axa and building materials group Saint-Gobain helped the benchmark CAC-40 index ended 3.43 percent or 95.85 points higher to 2,890.68 points,rising 150.67 from seven days ago.

Volatile technology and insurance stocks such as German chip maker Infineon and Dutch insurer ING -- Europe's biggest -- led the gainers as investors sought maximum exposure to a rally that has boosted regional indices by almost a fifth in less than 2 weeks.

ING rose 11.4 percent, while France's AXA and Britain's Prudential jumped more than 7.5 percent each, as investors cheereda revaluation in the insurance sector's huge equity holdings.

Banking stocks also rose, with BNP Paribas, Deutsche Bank and UBS all gaining more than 5 percent each.

Shares in German travel firm Tui surged 8.7 percent as investors bet on a return to normal holiday patterns in the event of a swift end to the Iraq crisis. Airline stocks also fared well for similar reasons.

However, analysts voiced skepticism over the sustainability of any gains, recalling previous rallies that have petered out and warning of challenges still facing the global economy -- with or without war.

Questions?Comments? Click here

China's Aviation, Tourism Industries Unfazed by War

>> Full Coverage

The US Must Not Put Pressure On the UN ( 3 Messages)

Saddam Vows to Globalize War if Attacked ( 5 Messages)

China's Z11 Helicopters Get Green Light for Civilian Use ( 5 Messages)

New Premier Comes from Grass Roots ( 2 Messages)

China Hopes War can be Avoided: FM ( 3 Messages)