Hopes for a year-end rally were kindled in Zurich as the market advanced strongly and the SMI index punched back through the 7,000-point level.
Dealers said much of the activity was derivatives-related ahead of today's option expiry on Eurex. However, with some window-dressing, it was still enough to send the index up 154.5, or 2.2 per cent, to 7,041.
Among the recently active insurers, Baloise ran into profit-taking, losing SFr22 to SFr1,431 as speculation about a possible takeover by Deutsche Bank dried up.
Frankfurt ended 45.37 higher at 4,732.11 on the Xetra Dax after a session dominated by today's futures expiry and bargain-hunting. Adidas-Salomon gained DM15.30 at DM184.80. Preus sag jumped DM34.40, or 4.8 per cent, to DM735.05 on news of plans to expand its travel agent operations with a bid for the German group First Reiseburo.
Paris ended 43.70 higher at 3,751.17 on the CAC40 index after a slightly busier session for a three-day gain of 2.4 per cent.
Oils made a strong start, but fell back as the international oil price weakened. At the close, Total was off FFr22 at FFr566 and Elf Aquitaine was off FFr12 at FFr630. Among the market heavyweights, Renault was also weak, slipping FFr3.40 to FFr236.
Among rising stocks, Pinault Printemps added FFr59, or 6.3 per cent, to FFr999 after rumours involving the media sector.
Amsterdam continued to push higher with the AEX index adding 16.16 at 1,113.28 ahead of today's options expiry. Financials had another good day and Royal Dutch and Unilever also pushed higher. ABN-Amro added Fl 1.10 at Fl 38.40 and Fortis Amev gained Fl 4.40 at Fl 145.50.
Philips stayed weak, slipping Fl 3.10 to Fl 113.40, but Royal Dutch gained Fl 2.90 at Fl 91.30 and Unilever added Fl 4.30 at Fl 145.50.
Vendex pushed ahead after a local court gave the go-ahead for the merger with rival retailer KBB. The shares added Fl 1.10 at Fl 44.70.
Helsinki prospered again as Nokia, the telecommunications company, posted a large gain for the third day running. The Hex general index closed 88.75, or 1.7 per cent higher, at 5,307.90, adding to a rise of 4.9 per cent in the previous two days.
Nokia has recovered strongly since its share price fell 3.9 per cent over three days after a profits warning last Thursday by Swedish rival Ericsson. Nokia gained FM18, or 3.2 per cent, to end at FM581.50.
Milan moved forward in late trading after Wall Street opened stronger. The Mibtel index rose 106 or 0.5 per cent to end at 21,916.
