The FTSE Eurofirst 300 closed up 0.4 percent to 1,379.11 after an early drop to as low as 1,369.89.
The oil sector was instrumental in the day’s gains, with the sector up 0.9 percent as a whole. Neste Oil gained 3.8 percent to €28.90. Statoil was up 1.4 percent to NKr187, while Total added 1 percent to €218.30 and Repsol ended the day up by 0.4 percent to €23.70.
Telecommunications companies were also on the rise. Belgian company Belgacom added 1.8 percent to €27.52 when Morgan Stanley upgraded the telecom from “underweight” to “equal-weight”. Elsewhere, mobile phone group Mobistar gained 2 percent to €61.55.
The largest decline of the day came from European defence company EADS, which dropped 4.4 percent to €32.73. The company’s shares were down after two major shareholders said they will reduce their holdings in the parent company of Airbus. Media group Lagardere announced that it will reduce its stake in EADS from 15 percent to 7.5 percent. Lagardere ended the day 3.7 percent higher to €66.80 as Goldman Sachs upgraded it from “outperform” to “in-line.“ DaimlerChrysler will also reduce its stake in EADS by 7.5 percent, leaving it with 22.5 percent ownership of the defence company.
EADS was also hurt by news that defense electronics group Thales, which had been rumored as a possible partner for EADS in its satellite business, will purchase French telecommunications equipment maker Alcatel’s satellite business instead. Alcatel added 2.1 percent to €13.35 and Thales dropped 2.5 percent on the day to €36.36.