The major European stock exchanges, as well as major technology stocks traded on the European markets, stabilized on Monday after having posted steep losses Friday.
The financial community appeared to have breathed a collective sigh of relief upon the reopening of New York stock markets on Monday morning for the first time since Tuesday's terrorist attacks brought activity on the financial markets to a grinding halt. The European stock markets may also have been reacting to the move by the Federal Open Market Committee to cut its key federal funds interest rate from 3.50 percent to 3.0 percent.
All the major European markets, including those in Amsterdam, London, Frankfurt and Paris, posted gains for the day.
By the end of the business day Monday in Europe, the Amsterdam, Frankfurt and Paris stock exchanges posted the biggest increases, of 3.24 percent, 4.25 percent and 2.7 percent, respectively. The Brussels and London stock exchanges also posted modest gains of 0.13 percent and 2.12 percent, respectively.
In each major exchange, the index of the top stocks gained. The Amsterdam AEX 25 index was up 13.81 points, to 440.31; the Frankfurt DAX 30 index was up 175.11 points, to close at 4291.09; the Paris CAC 40 index was up 105.41 points to close at 4014.9 points; the Brussels BEL 20 was up 3.17 points to close at 2508.39; and the London FTSE 100 index closed higher at 4856.5, an increase of 100.8 points.
Technology stocks also experienced something of a rebound.
Dutch telecommunication company United Pan-Europe Communications NV (UPC.AMS) went from being one of the worst performers on the Amsterdam stock exchange on Friday to being its best on Monday. The company's stock was up 16 percent, to 0.29 euros (US$0.26) per share, up 0.04 euros. Koninklijke Philips Electronics NV (PHI.AMS) was also posting strong gains in late afternoon trading. The semiconductor, components and consumer electronics maker had gained 4.71 percent, or 0.92 euros, to trade at 20.45 euros per share.
Telecommunication operator Deutsche Telekom AG (DTE.XET) was the strongest performer on the Frankfurt stock exchange on Monday, up 8.29 percent to 15.81 euros per share, a gain of 1.21 euros. German business software developer SAP AG (SAP.XET), which had lost 4.75 percent of its value on Friday, was up by 2.49 percent Monday, to trade at 113.6 euros per share, up 2.76 euros per share.
On the London stock exchange, Vodafone Group PLC (VOD.LON) was the day's strongest performer, up 6.94 percent to close at 1.3475 pounds (US$1.98), a gain of 0.0875 pounds per share. Beleaguered British Telecommunications PLC (BT.A) also posted a gain of 5.17 percent, or 0.185 pound per share, closing at 3.765 pounds per share.