European markets rallied modestly with Frankfurt ending within 8 points of its session best, adding 55.25 at 4,869.29 on the Xetra Dax index. Deutsche Telekom pushed ahead strongly on news of cellular expansion. The German market heavyweight, which is taking a controlling stake in Austria's second biggest mobile phone group, rose €2 to €36.60.
BMW stayed weak, unwinding more of Monday's gains, built up after management changes sparked a wave of takeover talk. The shares came off €3 to €707.
Amsterdam brushed aside unsettling results from a couple of market heavyweights to close with the AEX index up 5.58 at 518.07. Royal Dutch fell €1 to €38.55 after unveiling charges for restructuring and asset writedowns that were heavier than analysts had predicted. Philips's strong overall earnings contained enough disappointments to send the shares down €59.80 at one stage. They closed 15 cents better at €63.05.
Paris closed 1.8 per cent higher following a modestly positive start on Wall Street. The CAC-40 index settled 70.41 higher to 4,072.34. Leading the pack with a 6.5 per cent rise were Accor, up €13.40 to €219.40, and Michelin, up €2.40 to €39.40, after both reported healthy 1998 sales.
Bank stocks staged a comeback. BNP gained €4 to €76 on rumours it could join Axa in a counter-bid for Paribas. CCF followed the lead, rising €1.20 to €76, while SocGen, up €1.70 to €136.90, and Paribas, up €1.15 to €85, posted more modest advances. Axa, which reported 1998 revenues up 1.9 per cent, closed €3.90 higher to €116.90.
Stockholm failed to make progress and the general index eased 4.02 at 3,235.73. Volvo closed SKr12.50 (€1.40) higher at SKr223.50 (€25) in spite of profits that came in below expectations. Chief executive officer Mr Leif Johansson said Volvo was in no hurry to do a deal with Scania, [R O]after Mr Percy Barnevik, the chairman of Investor, said Scania could continue on its own for the next six or seven years, and that Investor was not seeking buyers. Scania tumbled SKr29 (€3.2) at SKr216 (€24) and Investor finished SKr9 (€1) lower at SKr337 (€37.8).
Milan put in a late burst as investors snapped up Pirelli and Fiat, which took the Mibtel index 366 higher to 23,011. Cable and tyre maker Pirelli closed 24 cents higher at €2.67 on speculative buying and after France's Michelin also surged on sales that matched expectations. Fiat rose 21 cents to €2.93 amid fresh speculation about European restructuring.
