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Wednesday, November 14, 2007
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Equity News
Nov 13 2007 10:08PM
European stocks end mixed; telecoms up, oils fall

LONDON, Nov 13 (Reuters) - European stock indexes closed mixed on Tuesday as the impact of gains in telecom stocks inspired by a raised outlook from Vodafone <VOD.L> were countered by losses in the energy sector which tracked weakness in oil prices.

Vodafone jumped 8 percent after the mobile phone group's first half results topped consensus estimates, extending a bullish sector view from robust results already announced by Telefonica <TEF.MC> and France Telecom <FTE.PA>.

Total <TOTF.PA> fell 2.8 percent, BP <BP.L> 0.9 percent and Royal Dutch Shell <RDSa.AS> 2.2 percent. U.S. crude oil prices declined 2.9 percent to $91.9 a barrel.

The pan-European FTSEurofirst 300 index <.FTEU3> closed 0.3 percent stronger at a provisional 1,516.4, well above the session's low of 1,498.5, while U.S. stocks also rose.

"It looks like a period of adjustment over the next 6-12 months, when the economy slows and we establish a valuation base at a lower level," said Mark Bon, a European fund manager at Canada Life.

The benchmark is still up 2 percent so far this year but well short of a 15 percent gain made by this time last year. The index has retreated about 7 percent from a 6-1/2-year high hit in mid-July as a credit crunch whacked global stock markets.

(Reporting by Anshuman Daga and Sitaraman Shankar)

(([email protected]; +44 20 7542 6437; Reuters Messaging: [email protected]))

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