LONDON, Feb 5 - European stocks edged higher on Thursday, boosted by Germany's Deutsche Bank , but weighed by French telecoms equipment maker Alcatel . Deutsche Bank said it made net profits of 436 million euros in the fourth quarter of last year, in line with forecasts. The stock rose 1.3 percent after Chief Executive Josef Ackermann said the bank had enjoyed a good start to the year and was confident of meeting its targets if the economy and markets stayed favourable. By 0834 GMT the FTSE Eurotop 300 index <.FTEU3> of pan-European blue chips rose 0.16 percent to 980.44 points. The narrower DJ Euro Stoxx 50 index <.STOXX50E> gained 0.22 percent to 2,826.21.
Europe's largest telecoms equipment firm Alcatel reported a narrower fourth-quarter net loss and a rise in operating profits, thanks to cost cuts and a stronger market. But disappointment with its forecast of flat sales in the first quarter sent the shares down two percent. "It's also a reaction to the Cisco statement overnight and a perception that profits growth in the sector has peaked," a trader said. Cisco said the recovery has begun, but that CEOs remain unusually cautious about spending and hiring at this point in the rebound. The company also cited weaker-than-expected orders in the last two weeks of January. In New York on Wednesday, the technology-heavy Nasdaq Composite Index <.IXIC> ended down or 2.52 percent, to 2,014.14, its biggest dip since September 24. The Dow Jones industrial average <.DJI> fell 0.33 percent, at 10,470.74.
Elsewhere Schering tumbled 5.8 percent after the German drug maker reported a slight fall in 2003 profits and HVB cut the stock to "underperform" from "neutral", citing the company's guidance for 2004. But the world's third-largest spirits group Pernod Ricard was up 4.1 percent after after it said pre-exceptional profit would rise by about five percent in 2003. Later on Thursday, the European Central Bank is expected to keep interest rates at two percent, but investors will analyze comments at the news conference for clues to future direction given euro strength.//