European Midday Update: Markets Take a Breather

LONDON -- Compared to Tuesday's storming session, Wednesday's activity looked decidedly listless. As investors' appetite for bargain hunting wore off, a subdued FTSE 100 stood 13.40 points higher at 6426.30. The mood extended to the Techmark 100, which was up a more modest 12.20 points to 3189.41.

"Given the sharp rise, it's not coming off as much as you would expect", said one trader at a French bank. "The fact that Vodafone (VOD Quote) is holding up is a good sign."

Overall, the market was very quiet. Telcos remained at the vanguard of activity following a robust set of results from Cable & Wireless (CWP Quote). The company announced a first-half pretax, pre-exception profit in line with expectations, but what really enthused investors was its pledge to increase revenue in its target market by 15% to 20% in the next few years. The shares rose 4.9% to stand at 892p ($6.24).

Encouragingly, Vodafone, whose positive results inspired Tuesday's rally, added a further 3p to 265.5. Brokers were impressed by the company's presentation and issued a barrage of upbeat notes. Lehman Brothers reiterated their buy rating on the stock. "Vodafone's strong interim results and impressive analysts meeting supports our view that not only does Vodafone occupy a unique position in global [telcos] but that its management can execute on this opportunity." ...