Around the World's Markets: Paris

THE CAC-40 index rose 1.35 per cent to close just short of the 4,200 mark at 4,197.88, although France Telecom alone accounted for about half the gain, rising 5 per cent to 74.9 euros; this reflected short covering after recent underperformance and hopes of a spin-off from Olivetti's bid for Telecom Italia.

Banks improved, led by a gain of 3 per cent in Societe Generale and a late rally in BNP, which ended 2.48 per cent up. Oils lost ground as the recent rise in Brent oil prices ran out of steam.