European Closing Update: Markets Mixed Ahead of Fed Meeting

LONDON -- Compared with Tuesday's remarkable performance in Europe and the U.S., today's activity was decidedly restrained. The mood of unbridled optimism and appetite for bargain hunting had subsided, and markets decided to return to a wait-and-see approach ahead of the Federal Open Market Committee's meeting.

In London, the FTSE 100 recovered from an early morning stumble to gather a degree of momentum, closing 19 points higher at 6432. The Techmark 100 closed up 17 points, or 0.5%, at 3194. Europe's other major stock markets were mixed, with the CAC-40 in Paris ending up 76 points at 6302, and the Xetra Dax in Frankfurt lately down 15 points to 6951 late in the extended trading session.

Telecom stocks set the positive tone in London after Cable & Wireless (CWP Quote) reported that although first-half profits fell 60%, net cash balances could grow to as much as 6 billion ($8.6 billion) by the end of the year. Shares in the company, which has been hard at work transforming itself from a diverse telecom investment trust into a business services group, ended the session 37p higher, or 4.4%, at 887 ($12.54).

Vodafone (VOD Quote) consolidated Tuesday's impressive gains, ending the session a penny higher at 263.5. Brokerage Bear Stearns reiterated its "buy" stance on the stock, while Schroder Salomon Smith Barney noted that the balance sheet looked very strong, especially compared with those of its peer group. ...