Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (10310)	8/10/2001 3:38:01 AM
From: 2MAR$	Read Replies (1) \| Respond to of 208838

Eurostocks track techs up pre-PPI, Marconi firms By Emily Kaiser LONDON, Aug 10 (Reuters) - European markets tracked tech stars like Marconi and Alcatel higher early on Friday, with all eyes on the 1230 GMT U.S. producer price index a day after renewed economic worries pounded some indices to 1998 levels. At 0715 GMT, the pan-European FTSE Eurotop 300 index <.FTEU3> ticked up 0.4 percent, recovering only a small portion of Thursday's two percent drop, while the narrower blue-chip DJ Euro Stoxx 50 <.STOXX50E> added 0.6 percent. Telecom equipment maker Marconi <MONI.L> set the pace for a modest technology recovery, climbing 2.9 percent and pushing the tech index <.SX8P> up one percent. Alcatel <CGEP.PA> added 1.5 percent while Nokia <NOK1V.HE> inched ahead 1.1 percent. Volumes were likely to remain subdued ahead of U.S. PPI data at 1230 GMT. After the Federal Reserve's "beige book" confirmed investors' worst fears about the sluggish economy and pushed European markets lower on Thursday, investors will be watching the PPI closely for clues on interest rate cuts. The PPI, a gauge of wholesale inflation, is expected to decline by 0.3 percent after a 0.4 percent drop in June, according to a Reuters poll. The core rate, which excludes the volatile food and energy sector, is pegged to increase by 0.1 percent, the same rise as June. While market watchers say weak data may free the Fed to slash a more aggressive 50 basis points off of interest rates later this month instead of the widely expected 25 points, it is a fine line between Fed optimism and deeper economic worries. Players are increasingly anxious for signs of economic improvement seven months after the Fed started cutting rates. Most economists say it takes six to nine months for the effects of easing to filter through the economy. "We're still waiting to see what Greenspan and the ECB have in store for us," said Florian van Laar, a fund manager with Amsterdam-based Eureffect asset management. "People tend to believe interest rate cuts are like a pill - you take it and expect to be better in a day. The truth is it takes six months or so to see the effects," he said. TELECOMS BOUNCE Telecoms <.SXKP> were close behind techs on the list of strongest sectors, up 0.9 percent after tumbling to October 1998 lows on Thursday. Deutsche Telekom <DTEGn.DE> -- stung by downgrades and a heavy share placement this week -- recovered 2.2 percent while France Telecom <FTE.PA> added two percent. Vodafone Group <VOD.L> edged up 1.8 percent. Other active stocks included tobacco firm British American Tobacco <BATS.L>, which tacked on 1.5 percent after a California judge slashed to $100 million a record $3 billion verdict against Philip Morris <MO.N> in a claim filed by a Marlboro smoker who is dying from lung cancer. Dutch insurer Aegon <AEGN.AS> jumped 3.4 percent, ranking as Europe's strongest large-cap share as Morgan Stanley raised its rating on the stock to "strong buy." Aegon was among the few bright spots on Thursday as it results topped forecasts. On a relatively quiet day for corporate results, Swiss bank Julius Baer <BAER.VX> was in the headlines as it said first-half net profit dropped by 45 percent amid lower transaction-related earnings and higher expenses. Switzerland's biggest independent private bank said it was adopting cost cutting measures which include halting an online platform project for investors. Its shares dipped 0.5 percent. ((European stock markets team, +44 020 7542 6437, fax +44 020 7542 3722, e-mail emily.kaiser@reuters.com)) MORE * end of story *