Optimistic comments by French President Jacques Chirac about the chances of a political settlement of the Kosovo crisis countered Wall Street's weak start and a bad day for the euro. President Chirac spoke of a significant chance for a peaceful settlement in Kosovo after Russia, the EU and the US had agreed on a common approach to Belgrade. The President's comments provided a late fillip for a number of bourses, which set aside early weakness and closed in positive territory.
The FTSE Eurobloc 100 index, which covers leading companies in the euro zone, closed 1.65 higher at 1,040.16. The FTSE Eurotop 100, covering countries inside outside of EMU, put on 28.55 to 2,956.43, while the broader FTSE Eurotop 300 settled 11.26 higher at 1,284.19.
Frankfurt rallied in late trading, clawing back from a session-low of 4,969.57 on the Xetra Dax index to close 29.63 higher at 5,040.34.
Adidas Salomon had another dull day, sliding €3.10 to €88.90. Hoechst fell back after Tuesday's sharp swings on the news that the group plans to sell a big stake in Swiss chemicals group Clariant. The stock came off 80 cents at €42. Deutsche Telekom was down 44 cents at €39.05.
Paris recovered from a mid-afternoon low to end flat, defying the early weakness on Wall Street. The CAC-40 index closed 1.65 higher at 4,315.34, well above its low of 4,282.79.
Lafarge, the cement company, came off €4.70 or 5.1 per cent to €88.30. Amsterdam ended 3.37 better at 556.56 on the AEX index, helped by solid performances from Philips and Unilever and a surge at Akzo Nobel. Philips gained €1 at €86 and Unilever 75 cents at €64.40. News of a $512 million disposal sent Akzo Nobel up €1.80 or 4.5 per cent to €41.70.
ING, hit lately by concerns about a possible outright takeover bid for French bank CCF, recovered modestly, adding 20 cents at €51.50 after ING denied planning to lift its stake beyond the present 13 per cent.
Milan slid lower in afternoon trade although potential partners Banca Intesa and BCI bucked the trend, overcoming Tuesday's losses on concern Intesa would not make a full bid for BCI. The Mibtel index turned back from a high of 24,283 to close 92 lower on the day at 24,147. Intesa put on 1.9 per cent at €4.88 and BCI was 1.7 per cent ahead at €6.90.
UniCredito gave up 21.6 per cent at €4.46 after reporting a 4.4 per cent increase in January-April parent gross operating profit. The heavily traded Olivetti edged 0.4 per cent lower to €2.83 as the market continued to await the capital increase to finance the Telecom Italia takeover bid.
Madrid ended little changed in quiet trading. The general index rose 0.49 to 891.87.
