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Europe flat in morning trade
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October 1, 1999: 4:52 a.m. ET
London makes narrow gain; Frankfurt, Paris slip despite euro strength
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LONDON (CNNfn) - European stock markets were mixed after a cautious start Friday as investors eyed next week's decision on U.S. interest rates.
The FTSE 100 in London reversed an early dip into the red to trade up 11 points at 6,040.7 while other markets lost their initial gains.
The Xetra Dax in Frankfurt was 11 points or 0.2 percent down at 5,139.18, the CAC 40 in Paris fell 20 points or 0.4 percent at 4,571.13 and the SMI in Zurich was 10 points down at 6,896.90.
The FTSE Eurotop 300, a broader gauge of the largest European stocks was flat. Oil and gas shares added 1 percent and chemical shares also moved ahead, but transport stocks were 2.7 percent lower.
The euro remained strong against the dollar, steering close to the $107.20 level last reached on Sept. 2 before weakening a little to $1.07 despite a strong series of data from purchasing managers' indexes throughout Europe..
Asian investors were buoyed by the strong performance on Wall Street Thursday which saw the Dow Jones industrial average climb 1.2 percent and the Nasdaq and S&P 500 also post firm gains.
U.S. markets were expected to open flat Friday. S&P 500 futures traded down 2.8 points at 1,295.40. Fair value on the index, taking interest and dividends into account, was calculated at 1,295.92.
London was moved ahead by a 2.4 percent jump by the FTSE's largest stock, BP Amoco [LSE:BP-A] as oil prices continued to firm. Second-ranked Shell (SHEL) was almost 1 percent ahead.
Rail infrastructure provider Railtrack (RTK) was the top gainer, up 4.1 percent, after a broker's upgrade.
Most corporate news had a negative impact. Airports operator BAA (BAA) plunged 16 percent after issuing a profits warning.
On a bad day for aviation stocks, shares in Easdaq-listed Debonair were suspended as the low-cost carrier faced bankruptcy.
Glaxo Wellcome (GLXO) lost 1.6 percent after reports that an anti-flu vaccine would not be made available on Britain's state-run health service.
British Gas (BG) lost an early gain to fall 0.9 percent after confirming plans to separate its Transco gas pipeline business.
P&O (PO.) was off 1.1 percent after the shipping and logistics group sold its Earls Court exhibition arena in London for $302 million.
Heavyweight telecom stock Vodafone AirTouch (VOD) lost 1.25 percent after a four-for-one share split.
Frankfurt fell after a 2.7 percent fall in Deutsche Telekom (FDTE) stock after it said it would seek to remain in the Wind Italian cellular joint venture, even in the face of hostility from estranged alliance partner France Telecom (PFTE), whose own stock lost 2 percent.
Retailer Karstadt (FKAR) was the largest gainer, up 1.1 percent after a share split.
Paris stocks opened mixed, with telecom and technology stocks falling back while financials and utility shares firmed.
Chipmaker STMicroelectronics (PSGS) slid 3 percent to head the fallers while construction firm Lafarge (PLG) lost 2 percent.
Cap Gemini (PCAP) rose almost 2 percent after sliding 14 percent Thursday. 
-- from staff and wire reports
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