In Frankfurt, the DAX index opened 0.04 per cent higher at 7,134.17 points and in Paris the CAC 40 index was showing a gain of just 0.17 per cent, or 11.29 points, mid-morning at 6,467.55 points. Dealers said that trading was subdued after heavy losses on Wall Street last Friday. The Dow Jones index fell by 2.48 per cent on Friday after a sell-off in the financial sector.

The losses followed a profit warning from California-based bank UnionBancal, the latest in a string of US banks to warn of leaner times to come. The losses pulled Hong Kong share prices 1.0 per cent lower Monday amid widespread profit-taking. But share prices in Tokyo closed 1.7 per cent higher Monday, ending a four-session losing streak.

Withlittle market-moving data or company announcements in London, the highlight of European trading was in Frankfurt, where Deutsche Telekom floated 200 million new shares in a third stage of its partial privatisation. Deutsche Telekom shares fell to an intra-day low of 66.00 euros in early electronic Xetra trade, a drop of 2.06 euros, or 3.0 per cent, from the closing price on Friday. The issue price for the new shares was set on Saturday at 66.50 euros (63 dollars) per share. In London, some of the high-tech companies saw their share price increase as the technology-laden Nasdaq brushed aside the wider market losses to rise slightly at the end of last week.

Shares in Psion computer company rose by 84.5 pence, or 16.5 percent, to 594.5 pence, QXL.com rose by nine pence to 115 pence and Invnsys shares rose by nine pence to 227 pence. Glaxo Wellcome drugs stock fell by 18 pence to 1,844 pence in spite of the regulatory approval given to an asthma treatment produced by the group. Oil stocks continued to rise inthe face of strong oil prices as the OPEC oil group prepares to meet in Vienna. BP Amoco stock rose by 10 pence to 636 pence and Shell shares rose by 8.25 pence to 580.5 pence.

Tokyo stocks jump 1.7%
Tokyo: Share prices in Tokyo rose 1.7 per cent Monday as the opening of a new high-tech stock market and hopes of economic recovery improved sentiment, brokers said. The Tokyo Stock Exchange's key Nikkei-225 index rose 273.04 points to end at 16,591.35, ending a four-session losing streak. The Topix of all issues on the stock exchange's first section rose 25.44 points to 1,533.88.

Trading was moderate with 600 million shares, compared with 653.4 million on Friday. "Investors have bought up shares since the opening on renewed buying sentiment after a decline in the index for four days in a row," said Hiroichi Nishi, senior market analyst at Nikko Securities. "Buying sentiment was supported by prospects for an economic recovery," Nishi said, adding that banking issues in particular benefited frombargain-hunting after a heavy sell-off last week.

Investors had dumped banking shares following Asahi Bank Ltd.'s announcement Thursday that it was quitting a trillion-dollar alliance with two Japanese partners. Trading is expected to be quiet towards the end of this week ahead of general elections on Sunday, brokers said. "Players are expected to become cautious and refrain from taking big positions ahead of the elections," said Masatoshi Sato, a broker at Kankaku Securities. Shares in Asahi Bank surged 33 yen, or 8.0 percent, to 448 and Bank of Tokyo-Mitsubishi Ltd. gained 55, or 4.4 percent, to 1,310. Fuji Bank Ltd. climbed 44 yen, or 5.8 percent, to 800 and Sumitomo Bank Ltd. jumped 81, or 6.5 percent, to 1,320. Nishi said the opening of Nasdaq Japan Monday also boosted investors' sentiment.

-- AFP