European markets rallied to end the session pressed up close to record highs.
The FTSE Eurobloc 100 index added 0.7 per cent at 1,272.81 and the FTSE Eurotop 100 index gained 0.6 per cent at 3,444.25. The FTSE Eurotop 300 index rose to 1,489.88, up 0.4 per cent.
Paris pushed to within a whisker of last week's all-time highs, helped by a rebound in France Telecom. The CAC-40 index shrugged off early weakness on Wall Street to close 54.66 or 1 per cent higher at 5,535.76, compared with the record high of 5,559.17 set on December 7th.
But turnover was below par at 3.1 billion, against a daily average of 3.5 billion, suggesting business may have started to slow down ahead of Christmas. Bank CCF stole the spotlight, rising €6.20 or 5 per cent to €126, on hopes of an enhanced takeover bid from ING.
Heavyweight France Telecom gave the index a leg-up, recovering from its unsuccessful bid for German wireless carrier E-Plus. By the close it was up €5.90 or 5.5 per cent to €112.40. Canal Plus advanced another 2.5 per cent as investors continued to revalue the company in the light of BSkyB's $1.5 billion purchase of a stake in KirchPayTV. Its shares closed up €2.90 at €120.50.
Frankfurt rose 29.30 at 6,127.20 on the Xetra Dax index after another startling performance by software leader SAP. Boosted by Internet optimism and an upbeat trading statement, SAP advanced a further €61.90 to €596.40. The shares have risen 22 per cent in two sessions.
Preussag rose €2.02 to €49.90 after the group announced it had a number of leisure acquisitions in its sights. In chemicals, BASF added €1.01 at €47.20. Deutsche Telekom slipped €1.20 to €57 following a denial regarding proposed property sales. Utilities continued to suffer from negative talk about electricity prices. Veba fell €1.84 to €41.81.
Amsterdam climbed to a record closing high on the AEX index which ended 4.94 firmer at 624.29.
Telecoms leader KPN had another strong day after a wide range of brokers responded to Friday's acquisition news with positive comment. The stock jumped a further €6.50 to €83 for a two-day advance of nearly 21 per cent. In media stocks, switching out of VNU into Wolters Kluwer sent the latter up €1.50 or 4.5 per cent at €34.55. VNU shed 1.24 at 42.
ING weakened on the announcement that it had made and then withdrawn a takeover bid for CCF, the French bank in which it has a 19 per cent stake. The shares shed 60 cents at €56.40.
