Benign US inflation data pushed European bourses steadily ahead in late trading. The FTSE Eurobloc 100 index gained 1.1 per cent at 1,071.42. The FTSE Eurotop 100 improved 1.1 per cent to 3,035.73 while the FTSE Eurotop 300 put on 1.2 per cent at 1,313.96.
Frankfurt ended a volatile week with a net five-day gain of 3.3 per cent on the Xetra Dax index. The benchmark tipped briefly above 5,300 at one stage yesterday before closing 94.52 better at 5,296.01.
News that Deutsche Telekom and Mannesmann had linked arms to bid for UK mobile phone operator One-2-One met with a mixed reaction. Telekom hardened 5 cents to €43.90, but Mannesmann pushed determinedly higher, adding €6.50 at €149. DaimlerChrysler was a firm market, gaining €2.39 at €84.29. Bayer was also in demand following a press report of upbeat management comments. The shares rose 90 cents to €40.35.
Stores leader Metro brushed aside news of weak retail industry sales in April, adding €2.29 at €62.54. Karstadt gained €3.00 at €473.
Paris tracked events in the US closely, ending slightly ahead after several blue-chip stocks profited from favourable announcements. The CAC-40 index finished 4.84 or 0.1 per cent higher at 4,385.83. It dipped to 4,366.78 in the early afternoon but began to rally minutes before the US market opened.
Renault put in a second successive powerful performance after unveiling a better-than-expected European market outlook at its shareholders' meeting. The stock climbed €2.46 or 6.3 per cent to €41.80, adding to the 9.4 per cent surge it enjoyed on Thursday on hopes that Japanese economic recovery would benefit its partnership with Nissan.
Elf-Aquitaine, the oil group, gained €4.20 or 3.1 per cent to reach €138.20 after it withdrew from the battle for control of Saga Petroleum of Norway.
Amsterdam ended just about all-square on the week with the AEX index up 3.16 at 567.44 after trading with the narrowest of ranges during the day. The benchmark fluctuated within less than 4 points throughout the session.
Steel group Hoogovens rallied after recent weakness following news of a take-over by British Steel. The stock bounced €3.15 to €47. Chemicals leader Akzo Nobel rose €1.85 to €43.45.
Helsinki reached an all-time closing high, reflecting investor relief that the US producer price index for May was in line with expectations. The Hex index closed 266.79 or 3.8 per cent higher at 7,303.95.
Nokia, the telecommunications group, climbed €3.96 or 5.4 per cent to €77.95, with most of the gains coming after the release of the US figures.
