The main Paris index moved back above 6,400, encouraged by good results from Vivendi and further gains at EADS plus a firm start on the Dow in New York. The CAC 40 closed at 6,400.43, a rise of 0.8 per cent.
EADS, the pan-European aerospace company that owns 80 per cent of Airbus, rose 7.2 per cent to a record high of €21.50, making three days of solid rises since Singapore Airlines announced it would buy 10 superjumbos. EADS launched at €19 in July and the shares have largely been below that level since.
Vivendi was also flying high after Monday's first-half results pleased the market and closed at €88.55, a rise of 3.1 per cent.
Telecoms equipment maker Alcatel rose 5.1 per cent to €76.75 ahead of an announcement about its new tracking stock, which will be listed on the Nasdaq as well as in Paris.
Milan edged higher with trade subdued ahead of the US decision on interest rates. The Mibtel index finished just 36 higher at 31,753.
Rolo Banca, part of the UniCredito group, put on 3.9 per cent to €21.21 on news that it would bid for some of the outstanding stock of Cassa di Risparmio di Carpi. The offer, worth more than 124 billion lire, was aimed at private investors who hold just under 20 per cent of the share capital.
BNL rose 2.8 per cent to €4.03 after Moody's said on Monday it was raising its financial strength rating on the bank.
Tyre and cable group Pirelli touched an intraday high for the year as it extended its gains to almost 20 per cent since news of the $3 billion sale of a fibre optic component business last week to Corning of the US. The Italian group's shares closed 2.8 per cent higher at 3.60.
Eni added to Monday's 3.5 per cent gain, with a rise of 1.1 per cent to €6.28, on expectations that the oil and gas giant would sign a natural gas deal in Madrid today with Spain's Endesa.
Amsterdam ended 4.21 ahead at 670.17 on the AEX index after gains of more than 4 per cent at telecoms leader KPN and cable TV group UPC.
Philips stood out against the broad upturn for technology stocks, dipping 31 cents to €48.44 in 11 million shares traded. ASM Lithography shed 21 cents at €35.10. Top financial Aegon, off 63 cents at €43.17, was also dull. KPN gained €1.01 at €25.90 and UPC €1.01 or 4.5 per cent to €23.31. Royal Dutch rose 54 cents at €69.75 as crude prices tracked $31 a barrel.
