Shares in Paris surged to new highs as telecoms and media shares pushed the CAC-40 index to a record close of 6,562.41, up 142.6 or 2.2 per cent.
Canal Plus, which gained almost 8 per cent on Friday, soared again, supported by a buoyant media sector, and closed up €26, or 12.3 per cent, at €238. Lagardere, which has a digital TV alliance with Canal, was up 6.4 per cent at €79.30 and Canal's parent, Vivendi, was up 6.3 per cent at €115.60.
One CAC-40 component retailer, Casino, was suspended pending news. The bourse also suspended trading in Casino's parent, Rallaye, rival retailer Galeries Lafayette and its subsidiary, Monoprix, pending a corporate announcement.
The FTSE Eurobloc 100 index rose 1.9 per cent to 1,507.58 and the FTSE Eurotop 100 index 1.8 per cent to 3,895.86. The FTSE Eurotop 300 index added 1.7 per cent to 1,667.99.
On the broader market, advertising company Publicis rose on the expectation that it may merge with Young & Rubicam of the US.
Frankfurt comfortably absorbed mid-session profit-taking to finish with the Xetra DAX index up 141.24 at 7,555.92 after a high for the session of 7,561.67.
The Nasdaq faltered in early trading, but the telecoms excitement generated by the possibility of an alliance between Spain's Telefonica and KPN Telecom of the Netherlands kept the mood upbeat.
Siemens added €6.50 at €169.50 and SAP €20.50 to €669. Market heavyweight Deutsche Telekom rose €3.61, or 5.1 per cent, to €75. Telekom and Siemens were the two volume leaders in the Dax.
HypoVereinsbank rose €2.70 to €69.70 on strong results, but trading among financials was mostly mixed amid interest rate concerns and dull bond markets.
BMW rallied €1.90 to €31.50 on hopes that the group could shortly reopen talks with Alchemy Partners, the investment group that last week pulled out of a deal to acquire BMW's UK Rover operations.
Amsterdam rose 6.06 to 673.54 on the AEX index after a number of top blue-chips racked up solid gains.
Royal Dutch rose €1.48 to €64.38 and Philips put on €1.10 at €50. KPN added €3.50 to €125 for a two-day gain of 12.5 per cent due to hopes of the alliance with Telefonica.
Aegon stood out against the broad upward trend in spite of broker optimism, with ING Baring lifting its target price for the stock to €80. Aegon dipped €1.70 to €76.95.
