Stockwatch Daily: Europe opens brightly

The FTSE100 rose 9.5 points to 5,635.4, due in the main to technology stocks. More specifically, it was telecoms stocks which led the way. Cable and Wireless rose 3.8 per cent, Colt Telecom was up 3.8 per cent and BT rose 1.2 per cent.

In Paris too, it was technology stocks that counterbalanced weaknesses in the old economy. Alcatel gained one per cent, STMicro rose 0.6 per cent and consultancy Cap Gemini was up 1.6 per cent after beating analyst expectations on its end of year results.

In Frankfurt, the Neuer Markt's Nemax 50 was up 1.8 per cent. In Germany too, tech stocks did well. SAP and Seimens both gained 1.8 and 0.4 per cent respectively.

The optimism of the European markets is in marked contrast to the state of Nasdaq yesterday, which fell below the 2000 mark, before rallying later on in the afternoon.