Around the World's Markets: PARIS

THE PARIS bourse set its second consecutive closing record for 1999, despite fears that the conflict in the Balkans will escalate.

The Cac-40 hit an intra-day high of 4,410.27, but tumbled by almost 100 points following reports that Serb troops had crossed into Albania. The index eventually closed up 0.28 per cent at 4,367.41.

One dealer said: "We saw a knee-jerk reaction to the news of the Serbs in Albania, and from now on the action there will bring increasing pressure on sentiment."