In mid-afternoon trade on Thursday the European equities markets were mixed, with the Eurofirst and Xetra Dax up slightly but the CAC-40 down just a bit. Once again, activity in the utilities sector was one of the driving forces behind the gains and losses.

The FTSE Eurofirst 300 was up 0.1 percent in the middle of the afternoon session to 1,360.82. The Xetra Dax gained 0.3 percent to 5,885.43. In Paris, however, the CAC-40 dropped 0.2 percent to 5,066.38.

Over the weekend, the French government approved the merger between the Franco-Belgian Suez and state-owned Gaz de France in a €73 billion dollar deal. Technically, Gaz de France is acquiring Suez, but the state-owned portion of the new company will be under 40 percent. The approved merger sent shares in both companies down, with Gaz de France losing 1.7 percent to €29.28 after rising earlier in the day. Suez lost 4.5 percent to €32.36.

Elsewhere in the sector, Gas Natural was up 1 percent to €26.17, Endsea lost 0.1 percent to €28.32, and Eon dropped 0.1 percent as well, to €94.69 as it was reported that the directors of Gas Natural in Spain had met over the weekend to decide whether to match Eon’s larger counteroffer for Endsea. Meanwhile, EDF was up 4.6 percent to €46.51 when Morgan Stanley raised its target share price for the French electricity provider from €40 to €50.

In the energy sector, Italian group ERG was up 1.2 percent to €20.30 as JP Morgan issued an initial rating of “overweight” for the company with a target share price of €23. Oilfield services company Saipem was up 11.8 percent to €18.07 ahead of its full year earnings report and after purchasing Eni’s engineering unit, Snamprogetti.

European equities markets were up in mid-afternoon trade on Friday, with the FTSE Eurofirst up 0.2 percent to 1,358.08. Additionally, Germany’s Xetra Dax was up 0.1 percent to 5,861.5 and the CAC 40 in Paris gained 0.4 perent to 5,062.2

Companies related to food production and sales were mixed on the day. Danone was up 2 percent to €96.95 on an upgrade from “equalweight” to “overweight” from Morgan Stanley coupled with a new share price target of €108. Earnings growth for the company was predicted to reach the mid-teens in the next two years. Food retailer Ahold, the fourth largest in the world, was also up, by 1.3 percent to €6.99 as it said it is thinking of making significant acquisitions for the first time since it nearly went bankrupt three years ago. Numico, however, lost 3.1 percent to €35.99 on a downgrade to “in-line” by Goldman Sachs on the basis of its cautious outlook statement.

In the related brewing sector, Inbev was down 3.1 percent to €36.54 despite full year earnings reports which showed operating profits coming in slightly above predictions at €3.33 billion, with growth at 15.3 percent.

The utilities sector was still seeing bid rumours. Endsea, a bid target for Eon, was up 0.6 percent to €26.24. In new rumors, Gaz de France and Suez are said to be thinking of forming an alliance to repel a bid for Suez by Enel of Italy. Gaz de France gained 2.6 percent to €29.35 and Suez was up 4.1 percent to €33.32, while Enel dropped 0.7 percent to €7.12.

In the pharmaceuticals sector, Sanofi Aventis gained 0.5 percent to €72.45 despite announcing that the launch of its anti-obesity treatement in the United States could be put off until later in the year. The drug company’s full-year report showed that net profits were up by 25.7 percent to €6.34 billion, and it said that its earnings should grow by about 10 percent this year.

In Europe on Thursday the equities markets fell, with the FTSE Eurofirst 300 declining by 0.2 percent to 1,355.46. Banking and retail were up on the day, but utilities were mixed and foods were down.

Among bankers DnB Nor, Norway’s largest bank, was up 0.9 percent to NKr81.50 after a strong performance in its brokerages led to a 28 percent leap in pre-tax profits in the fourth quarter.

German retailer Metro was up 4 percent to €43.90 on reports that German business confidence was at a 14-year high. Elsewhere in the retail sector, France’s Carrefour turned a comment by Deutsche Bank that its stock was undervalued into a gain of 3.1 percent to €40.86.

In the utilities sector, bid rumours continued but not to the huge benefit of companies in the sector as earlier in the week. Gas Natural was up 2.6 percent to €24.90 when Spanish construction company FCC said it would think about joining in a bid for Endsea. While Gas Natural gained on the talk, FCC dropped 0.4 percent to €57.10 and Endsea declined by 0.7 percent to €28.06. French utility Suez, gained 7 percent early in the day on rumors that it might be a takeover target by Enel, but by the end of the day Suez was only up 0.3 percent to €32. Elsewhere in the sector, EDF was up 1.5 percent to €42.47 on an announcement that its net profits had doubled, while RWE dropped 2.7 percent to €72.60 after issuing a statement saying that operating profits in 2006 would likely only grow by 5 to 10 percent.

Nestle was down by 3.3 percent to SFr386.50 despite a report of net profits in line with expectations and up 20.7 percent from 2004s figures. One analysts said that the profits report showed Nestle’s strength and that share prices do not reflect that strength, while Nestle’s chief executive put down reports that the company could be interested in bidding for Danone or Numico. Numico, meanwhile, dropped 1.7 percent to €37.13 as it announced disappointing results on fourth quarter sales, especially in baby food.

European equities markets were up on Wednesday, helped significantly by good news in the breweries sector. The FTSE Eurofirst 300 gained 0.3 percent to 1,353.84, while Frankfurt’s Xetra Dax was up 0.5 percent to 5,828.65 and France’s CAC 40 was up 0.6 percent to 5,022.35.

Utilities, which were up on Tuesday over bid rumors, saw declines as German utility Eon’s bid for Spain’s Endsea has already come in for criticism from the Spanish government and analysts say that regulators will examine the deal carefully before approving it. Endsea was down 0.2 percent to €27.49 and Eon dropped 0.1 percent to €95.62.

Other losses on the day included chemical group BASF, down 0.1 percent to €62.94 after disclosing that its fourth-quarter earnings were lower than had been expected. Also, in the auto sector, DaimlerChrysler dropped 1.5 percent to €46.56 on a downgrade from “outperform” to “neutral” from Credit Suisse. Irish telecommunications company Eircom was also down on the day on confirmation that Australian investment company Babcock & Brown Capital has approached Eircom about a takeover bid. Eircom dropped 0.6 percent to €2.19.

The breweries had a much better day of it. Heineken gained 3.8 percent on the day to €30.67 after it reported that its full-year profits were up 18.5 percent to €761 million on a 5.3 percent rise in the volume of beer sales. Meanwhile, Dutch brewer Grolsch gained 17.4 percent to €28.0 after it signed a US distribution agreement with Anheuser-Busch, a move which gained Grolsch an upgrade to “buy” from Rabo Bank.

Also seeing a gain on the day was cement company Holcim, the world’s largest. Holcim saw its share rise by 3.2 percent to SFr102.30 when UBS raised its target price from SFr107 to SFr123 and repeated its “buy” recommendation due to what it called the company’s growth potential in emerging markets and a positive outlook in US markets.

European equities markets were up on Tuesday, mainly on gains in the energy sector spurred on by a bidding war for Spain’s Endsea.

The FTSE Eurofirst 300 was up 0.7 percent to 1,355.05. In Frankfurt, the Xetra Dax fained 0.7 percent as well, to 5,836.56, while in Paris the CAC 40 was up to 5,013.78.

Eon, Germany’s largest energy firm, has launched a counter bid for Endsea, which has already received an offer from Gas Natural, another Spanish company. Because Eon’s bid is nearly three times Gas Natural’s market value, it isn’t considered likely that Gas Natural will improve its bid. However, Gas Natural is expected by some analysts to instead bid for Iberdrola.

Eon was trading up 2.9 percent to €96.10 after an initial decline. Endsea was up 9.4 percent to €27.87, while Iberdrola gained 6.7 percent to €27.05 and Gas Natural was up 0.9 percent to €24.56. Other European utilities also benefited from the speculation. Suez was up 3.3 percent to €30.66, Energias de Portugal gained 3.5 percent to €2.94, RWE rose 3.6 percent to €72.80, and Veolia Environment advanced by 3.9 percent to €44.00.

In other sectors, brewer Carlsberg was down 3.4 percent to DKr369 despite reporting a full-year operating profit up 3.4 percent from 2004, well below the 7.3 percent increase that had been expected.

Swedish bank Svenska Handelsbanken, however, reported higher than predicted operating profits for the full year, sending its shares up 4.4 percent to SKr201.

Equities markets in Europe saw advances on Monday on the strength of gains the oil sector as the FTSE Eurofirst gained 0.2 percent to 1,345.92, a new four and a half year high.

The oil sector was up on higher crude oil prices. Statoil gained 3.5 percent to €178. Meanwhile Saipem, the largest oil field services company in Europe, was up 3.1 percent to €16.04.

The banking sector was also up, with more takeover talk in Italian banking. Mediobanca, rumored to be a target despite an agreement that gives core shareholders 54 percent of the bank, was up 4.2 percent to a record high share prices of €17.60. Capitalia, also seen as a potential takeover target, gained 2.8 percent to €6.325. Meanwhile, EFG Eurobank was up 4 percent to €33.06 as JP Morgan raised its price target from €40 to €44 on the strength of the bank’s expansion in southeastern and central Europe.

Utilities were up on the day as well, with Electricite de France gaining 2.2 percent to €41.56 on consolidation talk. Eon gained 0.6 percent to €93.44 after its chief executive said he expects that three dominant players will emerge in the sector.

The pharmaceuticals sector was mixed. Schering was up 3.3 percent to €58.39 on an announcement that its fourth-quarter operating profits were up 30 percent, slightly higher than forecasts. It also said that it will buy the property and equipment used by its US partner, Chiron, to produce the drug Betaferon (Betaseron in the US), which is expected to be approved for the treatment of early-stage multiple sclerosis before the end of the third quarter. Shares in Novartis, which has not yet finalized its planned purchase of Chiron, was up 0.1 percent to SFr71.50.

Elsewhere in the sector, Serono dropped 2.2 percent to SFr959 as concern grew about competition between its multiple sclerosis drug Rebif with Betaferon. Sanofi-Aventis dropped 3 percent to €71.70 after regulators in the United States delayed final approval of Acomplia as a weight management treatment and rejected the drug as a stop-smoking aid.

In Europe on Thursday, the FTSE Eurofirst 300 was up 0.6 percent to 1,339.02. That was its highest close in over 4 years. At least part of the day’s advance was due to favorable earnings reports in several sectors.

In the banking sector, Societe Generale reported a higher than predicted rise in fourth-quarter profits, which it said were up by 42 percent due to higher revenues in its investment and banking units. This news saw its shares rise 4 percent to €118. Meanwhile, Zurich Financial Services gained 6.1 percent to SFr314 on a reported rise in full-year profits last year and predictions that the trend will continue this year. Also in Switzerland, Julius Baer gained 9.3 percent on the day to SFr112 after it said that outflows had slowed due to smaller than predicted withdrawals by clients unhappy with corporate moves last year.

In the telecommunications sector, Telnor of Norway announced a jump in fourth-quarter profits due to strength in its international subsidiaries. This included a doubling of revenues in its majority-owned Ukranian company Kyivstar. Telnor’s shares saw a 4.4 percent gain on the day to NKr71.25.

Cosmetics company L’Oreal was up 1 percent to €69.60 on news that it had its twenty-first consecutive yearly rise in profits. However, some analysts were worried that the profits had been achieved by cutting advertising and promotion, which was called unhealthy for the company’s long-term prospects.

Not all positive earnings reports translated into gains in share price on the day, however. Although its luxury Mercedes unit helped DaimlerChrysler beat fourth-quarter earnings predictions, the carmaker saw its shares decline 3.5 percent on the day to €48.33.

Other losers on the day included Deutsche Post, which dropped 2.2 percent to €22.08 on disappointing full-year earnings news and a downgrade from Deutsche Bank from “buy” to “hold”. Autostrade, the largest toll road operator in Italy, lost 0.8 percent to €22.18 on a warning that its estimates of the increase in traffic volume on its roads in 2005 had been significantly higher than actual traffic increases.

The European equities markets saw early gains disappear on Tuesday as declines in the automobile manufacturing and oil sectors overcame advances in the telecommunications and other sectors.

The FTSE Eurofirst 300 dropped 0.6 percent to 1,325.46, while the Xetra Dax was down 0.2 percent to 5,743.04 in Frankfurt. In Paris, the CAC-40 fell 0.6 percent to 4,929.97. Meanwhile, in early trade London’s FTSE 100 had fallen 0.3 percent, although the New York markets were up a bit.

France Telecom announced that its full-year underlying earnings were up 2.8 percent to €18.42 billion, around what had been forecast. In addition, the company said it will speed up its restructuring, including jobs cuts of 17,000 jobs around the world. This news sent the telecommunications company’s shares up 3.1 percent to €19.19.

Also up on positive earnings news was Electrolux, the world’s largest home appliance manufacturer. The Swedish company gained 3.8 percent to SKr217 as it announced that its fourth-quarter underlying pre-tax earnings were SKr1.86 billion, higher than forecasts of SKr1.49 billion and up from the previous quarter’s SKr1.36 billion.

The auto sector, including both carmakers and associated industries, were down on the day. Volkswagen was down 1.4 percent to €57.46, while BMW fell 1.9 percent to €39.84 and Renault dropped 2.6 percent to €81.70. Meanwhile, tyre makers Michelin and Continental were both down on the day, by 5.7 percent and 2.4 percent respectively. Michelin was trading at €51.60 and Continental’s price fell to €84.31.

In the oil sector, Neste Oil declined by 5.8 percent to €22.56, while OMV was down 4 percent to €51.26 on falling crude oil prices.

European equities markets saw increases on Monday, primarily on gains in the automobile manufacturing sector. Most brewers were also up, as were some parts of the chemicals industry. Other companies did not fare so well on the day.

The FTSE Eurofirst 300 was up 0.3 percent to 1,326.87 after a loss of 0.5 percent on Friday. Meanwhile, Frankfurt’s Xetra Dax gained 0.5 percent to 5,728.68 and in France the CAC-40 was up 0.3 percent to 4,923.19.

In the automobile manufacturing sector, Volkswagen was up 5.3 percent to €58.33 on the strength of an increased target price of €55, up from €38, by UBS. Porsche was also the recipient of an upgrade, from HVB, to “outperform” from “neutral”, sending its shares up 4.2 percent to €695,50. Porsche’s price target was also raised, from €688 to €718. Renault gained 4.2 percent to €83.05 and BMW gained 2.3 percent to €40.50.

Meanwhile, brewers Heineken and Carlsberg both also received upgrades to “buy” from Merrill Lynch. Heineken gained 2.1 percent on the day to €29.14, while Carlsberg was up 1.9 percent to DKr368. Carlsberg’s joint venture with Scottish & Newcastle as well as its cost-cutting opportunities, were among the reasons for its ratings bump. Bucking the upward trend, Belgian brewer Inbev was down 1.8 percent to €38.59 as Merrill Lynch downgraded it to “sell” on issues related to valuation.

In the chemicals sector, Swiss specialty chems company Clariant was up as much as 10 percent during the day and settled up 2.7 percent to €20.70 on news over the weekend that it is at an advanced stage in sale talks with private-equity firms.

In the pharmaceuticals sector, Roche was down 2 percent to SFr188.10 even though it said there would be no financial impact due to its suspension of patient recruitment for trials on Avastin, a colon cancer drug. The suspension was said to be on account of safety concerns.

Norwegian energy group Statoil dropped 3.4 percent to NKr170.50 after it reported that its fourth quarter operating profits were up less than had been anticipated.

The European equities markets were down Wednesday, as the FTSE Eurofirst 300 dropped 0.2 percent to 1,315.77. This was despite more rumors of mergers as oil and mining stocks fell with Tuesday’s declines in commodities prices.

Salzgitter was down 4.6 percent to €54.49 as Australia’s biggest steel maker, BlueScope Steel, issued a profits warning. Copper producer Norddeutsche Affinerie lost 5.5 percent on the day to €24.42. Not everyone in the metals industry was down on the day, however, as speciality steel and tool maker Sandvik gained 4.8 percent to SKr407 after its fourth-quarter report showed an almost 35 percent gain in profits on strong demand.

In the oil sector, OMV was down 2.9 percent to €55.58, while Total dropped 2.4 percent to €215.90. The European oil sector as a whole fell 2.2 percent on the day.

The air transportation sector fared better, with Alitalia up 5.4 percent to €1.154. Even though Morgan Stanley said that the Italian air carrier will have to struggle to restructure, it nonetheless upgraded the airline to “overweight” and set a price target of €1.60. Meanwhile, Air France-KLM gained 3.1 percent. Morgan Stanley also upgraded that airline to “overweight”, saying that the market has underestimated revenue and cost synergy benefits when the French airline merged with KLM.

Other merger talk came in the telecommunications sector. Speculation over Portuguese conglomerate Sonae’s hostile bid for Portugal Telecom and takeover bid for PT Multimedia, 58 percent owned by PT, sent Sonae up 0.8 percent to €1.23. PT gained 0.1 percent to €9.70, and PT Multimedia gained 0.3 percent to €9.93. If these deals are completed, analysts expect that France Telecom, which owns 23.7 percent to Sonaecom, Sonae’s telecommunications arm, will be affected. France Telecom rose 1.3 percent on the day to €18.35.