European markets ended a volatile week more or less where they began with the FTSE Eurobloc 100 index closing 1.1 per cent better at 1,073.32, against 1,067.50 at the close last Friday.
The FTSE Eurotop 100 index added 1.1 per cent at 2,961.96 and the broader FTSE Eurotop 300 index put on 1 per cent at 1,290.62. Forestry and paper was the day's top performing sector, advancing 3.6 per cent thanks mostly to gains of 5 per cent at Stora Enso.
Frankfurt swung back on to the upside, adding 67.29 to 5,254.14 on the Xetra Dax index to close a volatile week with a modest net five-day gain.
Viag and Veba continued to power ahead as talk of a merger for the two diversified utilities persisted. Viag rose #21.3 to #542.50 for a five-day gain of 17.2 per cent and Veba, up 9.3 per cent on the week, gained #2.53 to #62.51.
Banks were also busy with Japan's big, three-way bank merger focusing investor attention on the sector. Long standing take-over candidates Dresdner and HypoVereinsbank rose #1.59 to #43.09 and #1.56 to #57.56 respectively.
Lufthansa stayed firm having turned in interim figures on Thursday that stopped short of the doomsday numbers that most analysts had pencilled in. The stock added a further 50 cents at #18.24.
Paris rallied after Thursday's fall, lifted by several pieces of good corporate news.
The CAC 40 ended 63.10 or 1.4 per cent higher at 4,472.
France Telecom led the way up, improving #2.25 or 3.3 per cent to reach #71 after the publication of a report showing that mobile phone sales in France were booming.
Credit Commercial de France advanced #3.20 or 2.9 per cent to #113.70 on further speculation that either KBC or ING would soon launch a bid.
Air Liquide, the industrial gases group, and Sanofi-Synthelabo, the drugs company, both prospered on news of changes to the Dow Jones Euro Stoxx 50 index announced on Thursday.
Sanofi-Synthelabo, which entered the index, rose #1.19 or 3 per cent to #40.35, while Air Liquide, which remained in the index against expectations, climbed #5.50 or 3.8 per cent to #151.50.
Amsterdam ended a session of very narrow trading with the AEX index up 4.02 at 564.54.
ABN Amro stayed in demand, adding 30 cents at #22 after several brokers upgraded the stock following Thursday's better than expected half-time results. Dresdner Kleinwort Benson lifted earnings estimates for this year by 15 per cent.
