FRANKFURT -- Stocks bounced back after a weak open, overcoming worries stemming from Warren Buffett's remarks that the U.S. market is in a "dangerous" period.
Vast liquidity and merger hopes cushioned the fall and then helped lift bourses into modestly positive territory as worries about bond yields and corporate earnings faded into the background.
In Frankfurt, the
was down 37 points at 4760, while in London the
was up 21 at 6082 and in Paris the
was up 7 at 4056.
Andreas Kehl, equities sales trader at
in Frankfurt, pointed to Dax 4750 as a major support level. Thus far the DAX has held the level on a closing basis. But the trader thinks the level will eventual crack and is advising clients to postpone buying.
"If we break 4750, we are going to sell off hard," he said. "It will be a quick move down and it will be felt across Europe."
On the corporate front, U.K. palm-top computer firm
slipped 3.1% after reporting that full-year profit more the doubled, but that software investment costs are high and will be a drag on 1999 profits. Psion is involved in a joint venture called
with mobile-phone heavyweights
German business software
was down 4.1% after
reported Tuesday that SAP America President Jeremy Coote will depart to become general manager of
, the owner of
, fell 2.4% after announcing that 1998 net profit was up 11.4%, but that 1999 would be a difficult year.
Shares of French automaker
fell 3.7% after disappointing results. The company reported 1998 profits of 484 million euros, reversing 1997's 422 million-euro loss.
Finnish IT services firm
plans to buy Swedish rival
for $1 billion in stock. Tieto shares were up around 7% and Enator was up 9.2%.