European stocks end higher

January 22, 2002 Posted: 1759 GMT

LONDON (CNN) -- European markets ended mostly higher on Tuesday, boosted by better than expected corporate earnings in the U.S.

Technology heavyweights Lucent and Amazon.com posted positive results, along with U.S. drugs giant Merck, overshadowing retailer Kmart's decision to file for Chapter 11 bankruptcy protection.

London's FTSE 100 rose 0.2 percent to 5,149.2 and the CAC 40 blue chip index in Paris ended 0.5 percent higher at 4,4446.72 while Frankfurt's electronically traded Xetra Dax was down 0.3 percent at 5,055.53 in late trading (the German market closes at 1900 GMT).

Market Movers

FTSE 100 / FTSE 250 DAX 30 / DAX 100 CAC 40 / SBF 80

The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, rose 0.2 percent, with the life insurance and automobile sectors among the big gainers.

Leading the insurance sector higher was Britain's CGNU (CNGU), which was the top gainer in London, closing up 4.3 percent – but off its highs for the session -- after the group shrugged off tough market conditions with a stronger-than-expected 12-percent rise in yearly life and pension sales.

Europe's auto sector was also strong, with Peugeot {PAR:PUG] rising 2.2 percent in Paris. German car maker Volkswagen (VOWG) was up 1 percent in late trading in Frankfurt, while Italy's Fiat edged up 0.1 percent – down from its session highs -- after the company said its India unit may begin making pick-up trucks. 

Meanwhile, Deutsche Lufthansa (FLHA), Europe's second-largest airline, was down 2.3 percent in late trading after saying it expected to post a loss for 2001. The carrier had said it expected to avoid losses as it introduced plans to cut costs.

The technology sector closed off its highs for the day, with  STMicroelectronics (PSTM), Europe's biggest chip maker, ending up 1.8 percent. The Franco-Italian company plans to report earnings after the New York market closes later in the day.

Infineon Technologies (FIFX), Europe's second-largest chip maker, was up 1.2 percent in late trading after the company's Chief Executive Ulrich Schumacher told CNN there are signs of a slight pick up in DRAM memory chip prices. That comes one day after Infineon said there was no sign of a "sustainable" industry recovery as it posted widening losses.

French Internet service provider Wanadoo (NAD), a unit of France Telecom, rose 7.3 percent after reporting improved sales in the fourth quarter of 2001 and predicting it would become profitable this year.

Finland's Nokia, the world's biggest mobile phone maker, fell 1.5 percent – despite notching up gains earlier in the day -- after investment bank Morgan Stanley Dean Witter on Monday downgraded its rating on the world's biggest maker of mobile phones.

Swedish telecoms equipment maker Ericsson lost 2 percent, after being in positive territory for much of the session. Both Nokia and Ericsson will report earnings later this week.

Market Movers

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Among Europe's smaller markets, Amsterdam's AEX index rose 0.5 percent, while Milan's MIB30 index and the SMI in Zurich were both up 0.6 percent.

In U.S. on Tuesday, tech stocks led Wall Street lower at midday, erasing early gains tied to online retailer Amazon.com's first-ever profit, as the bankruptcy filing of retailer Kmart underscored concerns that a true market turnaround remains elusive.

The Nasdaq composite index was down 31.68 points to 1,898.66, while the Dow Jones industrial average 9.2 points lower at 9,762.65.