European markets closed with a number of record highs, brushing aside any concerns about the euro which sank to fresh lows against the dollar, and concentrating firmly on the latest round of positive inflation data from the US.
The FTSE Eurobloc 100 index ended 1.1 per cent higher at 1,085.95. The FTSE Eurotop 100 gained 1 per cent at 3,066.86 and the FTSE Eurotop 300 rose 1 per cent to 1,326.35.
Frankfurt bounced back from early losses to close with the Xetra Dax index up 37.75 at 5,382.67 after a low for the day of 5,298.61.
Software leader SAP shot ahead on news of strong results from US rival Oracle. The shares jumped to the top of the European performance charts with a gain of €30.50 to €400.20.
Siemens gained €1.13 at €70.33 on talk that the group was set to link up with Fujitsu of Japan on PC production. Mannesmann rose €1.05 to €146.05 on telecoms acquisition hopes.
The rumble of discontent over planned changes to the formula denoting constituents of the Stoxx stable of indices grew increasingly voluble. Volkswagen pushed higher for the second day running on hopes for inclusion when the index changes take place in August, but a number of existing member shares suffered relegation jitters, notably Lufthansa.
The shares lost 57 cents at €18.99. VW, in contrast, rose 75 cents to €66.38 for a two-day gain of 5.9 per cent.
Paris ended at an all-time closing high as several blue-chip stocks registered strong gains. The release of US consumer price index figures helped drive the CAC-40 index up 63.57 or 1.4 per cent to 4,481.75, beating the previous record of 4,442.84 set on May 3rd.
The main corporate news concerned Cap Gemini, the software company, which fell 2.4 per cent on arbitrage selling after it announced it planned to bid for the shares in its Dutch subsidiary it did not already own. The company ended €3.30 lower at €136.70 while its Dutch subsidiary jumped €11.30 or 23.8 per cent to €58.80.
Elf-Aquitaine and Total, the oil groups, performed strongly as the price of Brent crude for August delivery rose from $16.87 per barrel at Tuesday's London close to $16.96 just after 5 p.m. yesterday. Elf climbed €3.60 or 2.5 per cent to €146.40, while Total finished €4.50 or 3.6 per cent higher at €130.
Amsterdam responded to steady buying of market heavyweights with a rise of 5.30 to 570.73 on the AEX index which closed within a whisker of its 571.11 high for the session.
Among leaders, Unilever gained €1.45 to €67.10 and Philips €1.40 at €90.90. KPN added €1.30 at €45.10 on news that the telecoms group had stepped up its stake in Telecom Eireann.
