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European markets cling to gains
LONDON, England (CNN) -- European markets managed to hold onto some of their gains on Tuesday, supported by oil and insurance stocks, as an initial advance on Wall Street stalled after weaker-than-expected U.S. manufacturing data. London's FTSE 100, which fell 4.8 percent on Monday, rose 2 percent to 3,797.4 and the CAC 40 blue chip index in Paris gained 1.8 percent to 2,828.56 after diving almost 6 percent in the previous session. Frankfurt's electronically traded Xetra Dax was up 0.1 percent to 2,771.42 in late trading (the German market was set to close at 1800 GMT). The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 1.4 percent. Mining and information technology sub-sectors were among the top gainers, along with oil and insurance stocks. Oil stocks advanced as the price of Brent crude for November delivery rose 45 cents to $29.20 a barrel on concerns that a conflict in the Gulf could cut supplies from the region. BP (BP), Europe's biggest oil company, rose 2.5 percent to 436.86 pence in London. Shell Transport & Trading (SHEL), which owns 40 percent of the world's No. 3 oil group Royal Dutch/Shell, added 4.4 percent to 394.38 pence. Royal Dutch, which owns the remainder of the group, was also up 4.4 percent to 42.64 euros in Amsterdam. France's TotalFinaElf (PFP) gained 4.6 percent to 139.30 euros in Paris. Insurers recovered from Monday's heavy losses, with the UK's Prudential (PRU) rising 5.5 percent to 357.52 pence and Aviva (AV) gaining 4.3 percent to 364 pence. France's Axa (PCS) rose 1.9 percent to 10.12 euros. Vivendi Universal (PEX), the world's second biggest media group, gained 4.9 percent to 11.90 euros after it agreed to sell loss-making Italian pay television unit Telepiu to Rupert Murdoch's News Corporation in a long-awaited deal worth about 900 million euros ($888 million). (Full story) In the telecom sector, France Telecom (PFTE), Europe's second-largest phone company, jumped 10.2 percent to 7.65 euros. On Tuesday, French business daily Les Echos said troubleshooter Thierry Breton is to be the new chairman of debt-laden company. (Full story) Mmo2 (OOM), Britain's third-biggest mobile phone company, soared 10.6 percent to 44.25 pence after the company said first-half UK service revenue growth would be in line with a full-year target of 10 percent. (Full story) Meanwhile, Cap Gemini (PCAP), Europe's biggest computer services company, lost 7.9 percent to 14.92 euros, due to ongoing market concerns that it may have to lower its outlook due to a weakened market. UK-based Six Continents (SCX), the world second largest hotels group, fell 10.5 percent to 533.94 pence after the company announced plans to split its business and return £700 million ($1.1 billion) to shareholders. (Full story) The AEX index in Amsterdam gained 2.9 percent and Milan's MIB30 index edged up 0.6 percent, while the SMI in Zurich declined 1.4 percent. In the U.S. on Tuesday, weaker-than-expected data on the country's manufacturing activity frustrated the Dow's attempt to rally and also pulled the Nasdaq into negative territory. The Institute of Supply Management's index of manufacturing activity fell to 49.5 in September from 50.5 in August, compared to expectations of a 51 reading. A number below the key level of 50 denotes contraction in manufacturing activity. (Full story) At 1430 GMT, the Dow Jones industrial average was up 35.86 points at 7,627.79. The Nasdaq composite dipped 7.75 to 1,164.31, while the Standard & Poor's 500 index was nearly unchanged.
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