Shares in Madrid hit a new high for the fifth session in a row, with the Ibex 35 index closing up 26 at 12,458.6.
The Internet was a strong theme, with Banco Bilbao Vizcaya Argentaria the latest company to see its share value transformed by the "net effect". After announcing an e-business alliance with Telefonica its shares closed at €15.65, up €1.63 or 11.6 per cent. Stock market regulators widened the shares permitted trading limit.
Telefonica's own share price was 43 cents lower at €31.51 but its Internet offshoot Terra Networks had a volatile day, hitting a record €157.65 before falling back to €138, just 90 cents higher. The other banking performer was Banco Santander Central Hispanico, up 4.8 per cent or 48 cents to €10.41.
Frankfurt rallied in late trading to close with the Xetra DAX index up 33.25 at 7,644.80 after touching a low of 7,542.30 earlier in the session.
Deutsche Bank was an edgy market ahead of tomorrow's annual results statement in spite of broad optimism among brokers. The stock fell €1.15 or 1.3 per cent to €84.60. A steadier day for bonds mostly lent support to financials. Among insurers, Allianz gained €2.99 at €374.99 and Munich Re €7.00 at €302.
Paris closed lower amid mild profit taking after weeks of strong gains. The CAC 40, which was down 1 per cent around midday, clawed back after a stronger start on the Nasdaq and ended at 6,268.32, down 18.69.
Vivendi had the biggest negative impact, losing €3.50 or 2.7 per cent to €125.5. Bouygues led the CAC 40 gainers, boosted by a fresh burst of speculation that Deutsche Telekom was considering a bid for its mobile phone subsidiary, the third biggest in France. It gained €58 or 6.8 per cent to €906.
Amsterdam ended a subdued session with Royal Dutch 3.9 per cent lower and the AEX index off 7.96 at 654.72. Profit-taking mixed in with sector rotation was the main ingredient of a day of weak trading volumes. Royal Dutch shed €2.23 at €54.85.
Milan closed at a record 32,836 on the Mibtel all-share index, a gain of 558 or 1.7 per cent.
In Helsinki the Hex general index closed at 15,522.65, down 525.84 or 3.3 per cent.
