Stock markets ended mixed as Wall Street fell in early trading. Many European investors stayed on the sidelines ahead of the Congress testimony yesterday afternoon by Mr Alan Greenspan, chairman of the US Federal Reserve.
The Eurobloc 100 index edged 0.96, or 0.1 per cent, forward to 1,058.65, while the Eurotop 100 rose 15.20, or 0.5 per cent, to 2,937.34, and the Eurotop 300 index closed 5.97, or 0.5 per cent, higher at 1,280.32.
Frankfurt retreated from the day's best levels late in the session, as early gains in the banking and car sectors were erased. The Xetra Dax index turned back from a high of 5,274.33 to close 5.40 higher at 5,229.56.
A 2.3 per cent rise in Deutsche Bank provided the market with early support after the bank matched expectations with a near-20 per cent rise in first-half operating profit, and beat forecasts by posting an 80 per cent jump in trading profit. By the close, the shares had eased but were still 32 cents higher at €61.20. The strong result helped to lift Dresdner Bank, whose first-half results are due today. The shares closed €1.13 higher at €42.18. HypoVereinsbank, by contrast, lost €2.40 to €53.60.
Car stocks were in demand. BMW rose €4.50 to €689.50 as it forecast a substantially improved group result in the final six months of the year after a 26.8 per cent drop in first-half post-tax profit. Volkswagen edged 11 cents higher to €57.11 on the view that the share looked undervalued, in spite of the group's cautious outlook for full-year results. DaimlerChrysler, due to report first-half results today, put on €1.38 to €80.
Tourism and industrial group Preussag jumped €2.08 to €55.99 in a technical rebound after its recent pullback, which interrupted a steady rise since the start of the year.
Paris finished lower despite a strong showing by automotive stocks. The CAC-40 ended 2.22, or 0.1 per cent, down at 4,428.71.
Renault, the carmaker, was the biggest gainer on the CAC. It soared €3.65, or 8.3 per cent, to €47.60 after shares in Nissan, its Japanese partner, jumped almost 12 per cent on news that the two companies would start joint-purchasing of car parts and materials in Europe next year. PSA Peugeot-Citroen climbed €6.40, or 4.2 per cent, to €160 after reporting first-half sales ahead of analysts' expectations.
Amsterdam closed higher but off its peak in thin trade. The AEX index rose 4.75, or 0.9 per cent, to 556.18.
Benckiser, the household cleaning products group, continued to power ahead after the announcement on Tuesday of a merger with Reckitt & Colman of Britain. The shares finished €2.45, or 4.5 per cent, up at €57.05.
