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European stocks hit new 2003 peak
London, Dec 02: European shares eked out fresh 2003 highs on Tuesday with pleasing results from media group Vivendi Universal helping to underpin sentiment, as did buoyant expectations for the economy.
London, Dec 02: European shares eked out fresh 2003 highs on Tuesday with pleasing results from media group Vivendi Universal helping to underpin sentiment, as did buoyant expectations for the economy.
Vivendi shares rose to their best levels this year as the group swung to a forecast-beating third-quarter net profit thanks to gains at its telecoms, pay television and entertainment divisions.
Forestry and paper giants UPM-Kymmene and Stora Enso lifted the basic producer sector, mirroring a surge on Monday for U.S. peer International Paper as U.S. manufacturing in November showed strong growth.
The chemical sector, also closely linked to manufacturing, was higher, while speculation of a possible bid for UK home improvement retailer Kingfisher lifted the stock.
By 4:14 a.m. EST the FTSE Eurotop 300 index was up 0.2 per cent at 948 points, having hit a new 2003 high of 948.52 points. Monday's strong upward momentum was absent as almost two shares fell for every one that rose.
The Eurotop 300 closed on Monday at its highest level since September 11, 2002, the culmination of a roughly 40 per cent rally since a six-year low in March as investors bet on economic recovery.
The narrower DJ Euro Stoxx 50 index was up 0.5 per cent at 2,687 points, having touched a peak of 2,690.51 points.
Strategists said evidence so far indicated economic recovery was still taking place in the United States, while valuations in Europe were not stretched, but the ailing dollar was a concern. "You can see a nice correlation between economic data and the stock market, which in turn is waiting for new evidence that economic growth is at least continuing," said Gert de Mesure of Delta Lloyd Securities in Antwerp.
On Monday investors welcomed a report showing U.S. factories barreled ahead in November at their fastest pace since 1983, sending U.S. shares to 18-month highs, but strategists urged some caution.
The dollar was near Monday's record low against the euro as markets worried about U.S. economic imbalances such as future financing of a huge American current account deficit.
Among the day's standouts, British pest control-to-washroom services firm Rentokil Initial dropped five per cent to 209-1/2 pence on concerns about the group's hygiene unit and currency factors and despite the group saying it would deliver strong earnings growth this year and pledging to raise its 2004 dividend by at least 10 per cent.
Barclays, Britain's third-biggest bank, gained 0.3 per cent after saying that full-year profit would beat analysts' consensus as it maintained momentum in its first half.
Dutch chip equipment maker ASML tacked on 0.7 per cent after announcing it expected its end-2003 order backlog to exceed the backlog it had on September 28.
The Dow Jones industrial average closed up 1.2 per cent at 9,899.05 points, and the tech-laden Nasdaq Composite ended up 1.5 per cent at 1,989.82 points.
Bureau Report
Forestry and paper giants UPM-Kymmene and Stora Enso lifted the basic producer sector, mirroring a surge on Monday for U.S. peer International Paper as U.S. manufacturing in November showed strong growth.
The chemical sector, also closely linked to manufacturing, was higher, while speculation of a possible bid for UK home improvement retailer Kingfisher lifted the stock.
By 4:14 a.m. EST the FTSE Eurotop 300 index was up 0.2 per cent at 948 points, having hit a new 2003 high of 948.52 points. Monday's strong upward momentum was absent as almost two shares fell for every one that rose.
The Eurotop 300 closed on Monday at its highest level since September 11, 2002, the culmination of a roughly 40 per cent rally since a six-year low in March as investors bet on economic recovery.
The narrower DJ Euro Stoxx 50 index was up 0.5 per cent at 2,687 points, having touched a peak of 2,690.51 points.
Strategists said evidence so far indicated economic recovery was still taking place in the United States, while valuations in Europe were not stretched, but the ailing dollar was a concern. "You can see a nice correlation between economic data and the stock market, which in turn is waiting for new evidence that economic growth is at least continuing," said Gert de Mesure of Delta Lloyd Securities in Antwerp.
On Monday investors welcomed a report showing U.S. factories barreled ahead in November at their fastest pace since 1983, sending U.S. shares to 18-month highs, but strategists urged some caution.
The dollar was near Monday's record low against the euro as markets worried about U.S. economic imbalances such as future financing of a huge American current account deficit.
Among the day's standouts, British pest control-to-washroom services firm Rentokil Initial dropped five per cent to 209-1/2 pence on concerns about the group's hygiene unit and currency factors and despite the group saying it would deliver strong earnings growth this year and pledging to raise its 2004 dividend by at least 10 per cent.
Barclays, Britain's third-biggest bank, gained 0.3 per cent after saying that full-year profit would beat analysts' consensus as it maintained momentum in its first half.
Dutch chip equipment maker ASML tacked on 0.7 per cent after announcing it expected its end-2003 order backlog to exceed the backlog it had on September 28.
The Dow Jones industrial average closed up 1.2 per cent at 9,899.05 points, and the tech-laden Nasdaq Composite ended up 1.5 per cent at 1,989.82 points.
Bureau Report