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European stocks advance
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May 23, 2000: 1:25 p.m. ET
Technology, telecom issues boost share prices but investors remain cautious
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NEW YORK (CNNfn) - European markets ended higher Tuesday, recovering some poise late in the session and bolstered by gains among technology and telecom stocks.
But analysts said investors remained cautious as U.S. stocks remained under pressure. A volatile session was exacerbated by a weaker opening on Wall Street, dragging several markets into negative territory before a measure of confidence returned in the last hour of trading.
London's benchmark FTSE 100 index rose 51.30 points, or 0.9 percent, to 6,086.8, and Frankfurt's Xetra Dax climbed 14.73 points, or 0.2 percent, to close at 6,927.69. In Paris, the CAC 40 rose 54.39 points, or 0.9 percent, to 6,148.56.
News that Deutsche Telekom and France Telecom have agreed to peacefully unwind their cross-shareholdings boosted both companies. The former partners now are bitter rivals after falling out over expansion plans in Europe. Relief that the 2 percent stakes would not overhang the market helped both shares finish strongly higher, with France Telecom (PFTE) closing more than 3 percent ahead and Deutsche Telekom (FDTE) ending the day 4 percent higher.
"New economy" stocks in Paris were relatively unaffected by the gyrations in the sector, with TV broadcaster Canal Plus (PAN) and data network firm Equant (PEQU) among the leading contenders, rising some 3 percent.
Marks & Spencer (MKS) took the limelight in London, despite the venerable retailer cutting its dividend for the first time in its history. Investors were pleased at the firm's prospects for recovery and marked the shares up 18 percent. Index heavyweight Vodafone AirTouch (VOD) rode the bullish wave in the sector, gaining nearly 6 percent.
At the other end of the scale in London, chip designer ARM Holdings (ARM) crashed more than 7 percent.
Holding back the Frankfurt index were some heavyweight financial stocks: insurer Allianz (FALV) drooped almost 7 percent after Goldman Sachs downgraded its recommendation on the stock. 
-- from staff and wire reports
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