European Stocks Mixed, France Lags On Failed Telecom Merger

(RTTNews) - European stocks gave back early gains and finished in negative territory on Wednesday, as investors remained nervous about tensions in Iraq.

The Euro Stoxx 50 index of eurozone bluechip stocks slipped 0.14 percent, but is up 4.7 percent year-to-date.

The German DAX rose 0.14 percent, the UK's FTSE 100 added 0.21 percent, while the French CAC 40 lost 0.31 percent.

Carmakers extended their rally, with Renault and Volkswagen edging higher.

BMW gained 0.6 percent. It was reported that the automaker is planning to invest about $1 billion for its first assembly plant in Mexico.

Orange, which was said to be in talks to buy a stake in Bouygues Telecom, said it cannot take part in an operation to consolidate the French telecom market, as conditions have not been met.

Orange stock fell 3.7 percent. Bouygues lost 1.6 percent. Deutsche Telekom AG lost 3 percent.

Bilfinger, which cut full year outlook on Tuesday, is gaining 2.3 percent despite negative broker comments.

Deutsche Lufthansa lost 3 percent. Barclays cut the stock to ''Equalweight'' from ''Overweight.''

In Paris, Alcatel Lucent gained over 4 percent reportedly on a broker upgrade.

In London, Standard Chartered and Associated British Foods were among the gainers

Internet media company Blinkx plunged 54 percent, after the company said its trading for the first half has been below management expectations.

Mothercare PLC jumped 10 percent after the British children's products retailer said it recently turned down an acquisition offer from Destination Maternity.

Dufry rose 2.5 percent in Zurich after a positive broker recommendation.

AztraZeneca PLC added 1 percent after Chief Executive Pascal Soriot spent £2 million ($3.4 million) to raise his stake in the British company.

Roche was slightly lower after announcing the acquisition of a cancer-drug maker. A unit of Roche is acquiring Seragon, a privately held biotechnology firm based in San Diego, Calif.