Profit-taking and not entirely positive corporate earnings reports took the FTSE Eurofirst 300 0.4 percent lower on Monday to close at 1,338.31.

Tiremakers were mixed, with Continental adding 1.8 percent to €80 but Michelin dropping 1.9 percent to €47.56. Credit Suisse upgraded Continental from “neutral” to “outperform” in anticipation of its quarterly report, which is due on Thursday. At the same time, Credit Suisse reduced its earnings estimate for Michelin in both this year and in 2007.

Results in the banking sector were also varied. Greek banks did well. EFG Eurobank added 1.5 percent to €22.02 as it gets ready to release its second-quarter report on Tuesday. Meanwhile, National Bank of Greece was 1.7 percent higher after bank regulators in Turkey approved its acquisition of Finansbank there. Banks in Iceland didn’t do quite so well due to higher inflation and interest rates and a decline in the krona. Landsbanki held steady at IKr20.60, while Kaupthing dropped 0.7 percent to IKr702.

Still in the banking sector, ABN Amro was 2.3 percent lower to €21.67. Even though it said that net profits were up by 23 percent, analysts at both Bear Stearns and at Citigroup pointed out that much of those profits were due to one-time advantages such as favorable tax rates.

Spanish construction company Sacyr Vallehermoso dropped 2.2 percent to €29.95 on a downgrade from “buy” to “hold” from Citigroup. The broker did, however, raise the builder’s target share price from €30.90 to €32.

In the oil sector, Statoil was 1.9 percent lower to NKr182.50 despite quarterly profits that were higher than expected when it said that it could fall short of full-year production targets for both gas and oil.

The FTSE Eurofirst 300 saw gains every day this week, ending with an 0.7 percent advance on Friday to 1,344.17. Over the week, the Eurofirst added 4.2 percent, the biggest weekly gain since March 2003.

Utilities did well, especially with Spain’s provisional approval of the merger of Endsea and Eon, which added 11.4 percent to €26.85 and 10 percent to €96.11 respectively. Among the conditions imposed by regulators for the deal to proceed were that Eon will be required to sell all their coal-fired power plants that use Spanish coal, as well as all nuclear plants that are wholly owned by Endsea. On rumors that Gas Natural could rejoin the bidding, it gained 10.4 percent to €25.62 over the week.

Most companies in the European automobile manufacturing sector advanced over the week as they turned in quarterly reports that were better than had been expected. The exception was Peugeot, which fell 8.6 during the week to €41.37 after it issued yet another warning on profits, its third this year. Goldman Sachs downgraded Peugeot from “buy” to “neutral”.

Otherwise, carmakers did well. DaimlerChrysler was up 7.4 percent to €40.46 on outstanding performance of its Mercedes division. The news brought a reconfimation of Deutsche Bank’s “buy” rating on the shares. Renault added 9.3 percent this week to €86.20 when its profits fell less than had been expected. Volkswagen’s report showed that its operating profits were up by 50 percent in the quarter, helping reduce worries about higher costs for raw materials. West LB increased its targets share price for VW from €49 to €53, and the carmaker’s shares were 12.9 percent higher over the week to €58.97.

The FTSE Eurofirst 300 added 1.1 percent to 1,334.69 on Thursday, its fourth daily gain in a row and its highest closing figure in over two months. The Eurfirst has risen 8.5 percent since the middle of June. Much of the gains were credited to quarterly reports.

Utilities were up as it was announced that energy regulators in Spain have provisionally given their approval to the takeover of Endsea by Eon. Endsea added 4.3 percent to €26.22 and Eon was up 5.1 percent to €94.75. Gas Natural, which had also made a bid for Endsea, gained 3.5 percent to €24.68.

The automobile manufacturing sector saw gains related to quarterly results that were better than had been expected. DaimlerChrysler was 1.8 percent higher to €39.56 on its report of a rise of 11 percent in operating profits in the second quarter even though its Chrysler unit in the US did not do well. Volkswagen saw its operating profits rise by almost 50 percent. The report sent shares in VW up 8.8 percent on the session to €59.45.

Elsewhere among carmakers, Renault added 3.8 percent to €84.75 and BMW was up 2.9 percent to €39.80. Peugeot gained back 1 percent to €41.40 after yesterday’s loss on a less than favorable quarterly report.

Among losers, France Telecom dropped 1.5 percent to €16.36 on a warning that it would not meet its full-year underlying sales growth target.

The FTSE Eurofirst 300 was 0.4 percent higher on Wednesday to close at 1,320.81. Oil stocks helped the gains.

The semiconductor sector saw declines on the day. ASML dropped 0.8 percent to €14.92 and Infineon was down 2.4 percent. STMicroelectronics fell 3.1 percent to €11.63. While its second-quarter report reached expectations, forecasts for the third quarter were lower than investors wanted to hear. Dresdner Kleinwort reconfirmed its “reduce rating” and target share price of €11.50, saying it is looking for a slowing of demand across the sector.

Telecom Italia was down again, by 1.3 percent to €2.07, as investors worried after a second quarter report that disappointed.

In the automobile manufacturing sector, Peugeot fell 10.1 percent to €41 after dropping as low as €40.07 earlier in the session. It cited rising raw materials prices in issuing a downward-revised second-half outlook. Even so, WestLB reiterated its “buy” recommendation.

Gains in the oil sector included a gain of 1.6 percent to €52.55 for Total, while OMV added 3.7 percent to €48.75.

In the steel sector, Arcelor was up 8.6 percent to €43 on the news that Mittal Steel has accumulated 92 percent of Arcelor’s shares as it nears completion of its takeover.

In Europe on Tuesday the FTSE Eurofirst 300 was up a slight 0.1 percent to 1,315.53 after having gone as high as 1,321.01 during the day. Even though the day’s advance was so small, Citigroup issued an over-all positive statement on European equities markets, saying that it expects a slowdown but not a recession, and that while the growth of profits might slow, growth will remain strong.

The European oil sector saw gains on the day. OMV gained 3.2 percent to €47.45 and Statoil was up 4.2 percent to NKr186. Meanwhile, Norsk Hydro added 6.1 percent to NKr173 on a second quarter report that showed operating profits up by 30 percent. Still, Merrill Lynch repeated its “neutral” rating on Norsk due to a weak showing by its aluminium division.

Auto parts manufacturers were mixed on the day. Faurecia was down 0.4 percent to €41.23 after a large decline on Monday. French parts maker Valeo, however, was up 8.6 percent to €27.49 on a profit margin that was up to 4.1 percent in the second quarter, from 2.2 percent in the first quarter. Both manufacturers warned that raw materials prices would have more of an effect in the second half of the year.

Still related to the automobile sector, tire makers Michelin and Continental was advances, as each gained 2.8 percent to €45.19 and €75.72 percent respectively.

Losers on the day included Telecom Italia, which said operating profits were down in the first half. The report resulted in a 2.7 percent fall to €2.098. Also seeing declines was paper products maker SCA, which fell 4.8 percent to SKr301 on lower than expected pre-tax profits in the second quarter.

News and rumors involving bids activity lifted the FTSE Eurofirst 300 by 1.9 percent on Monday to 1,314.30, almost 7 percent higher than its low for the year, reached in June.

The forestry and paper sector was helped by Oji Paper’s move to acquire Hokuetsu Paper Mills, as investors looked for signs of similar consolidation within the sector in Europe. UPM Kymmene gained 1.7 percent to €17.60, while Stora Enso added 2.2 percent to €11.73 and SCA was up 3.4 percent to SKr316.

In the telecommunications sector, France Telecom added 2.1 percent to €16.75 on the announcement that it would sell its stake, totaling 54 percent, in directories publisher PagesJaunes to a US private equity house. Shares in PagesJaunes gained 0.1 percent to €22.06.

Phillips Electronics was up 6.6 percent to €25.15 amid speculation that three separate private equity groups would bind for its semiconductors unit. ABN Amro repeated its “buy” rating on Phillips as well as reconfirming its target share price of €28.40.

Rumors of a merger between Italian utilities ASM Brescia and AEM Milano resulted in gains of 3.4 percent to €2.99 and 1.7 percent to €1.93 respectively. The chairmen of both companies confirmed that they were ready to engage in talks.

In the automobile manufacturing sector, Peugeot overcame early losses to end the day up 0.1 percent to €45.30 even though Faurecia, the parts maker in which Peugeot owns a 71 percent, said it saw operating margins go down in the first half. Faurecia fell 7.6 percent to €41.39. Fiat added 1.1 percent to €10.71 on the news that it would enter into a consumer financing venture with Credit Agricole.

European equity markets saw ups and downs during the week, thanks to the unrest in the Middle East and the continuing string of quarterly reports being issued in various sectors. The FTSE Eurofirst ended the week 1 percent higher than it began, closing on Friday at 1,290.17.

Technology stocks were mixed during the week. Among in the semiconductors sector, Infineon ended the week 0.7 percent lower to €8.32. The German chip manufacturer had been up for most of the week, but ended the week on a low note as it issued a less than pleasing quarterly report. On the other hand, ASML and STMicroelectronics each were 1 percent higher on the week, to €14.76 and €11.77 respectively.

Mobile phone equipment makers Nokia and Ericsson both ended the week higher. Nokia added 4.5 percent to €15.28 despite a disappointing quarterly report, while Ericsson gained 7 percent to SKr22.80 after it was able to win a big contract.

In the electronics sector, Phillips Electronics issued a positive quarterly report early in the week. The good news managed to carry it to an advance of 6.3 percent for the week.

Among pharmaceuticals makers, Roche was up 4 percent during the week to SFr214.80 on good news and broker updates. Bear Stearns increased the drugmaker’s estimate of earnings, while Deutsche Bank upped its target share price from SFr245 to SFr250.

The FTSE Eurofirst 300 was 0.2 percent higher on Thursday, gaining only 2.3 points on the session to 1,301.6. Quarterly reports and broker recommendations were key factors in the gains and losses of individuals stocks.

Nokia added 0.4 percent to €15.62 after it released its second-quarter earnings report. Before the figures were released, shares in the Finnish mobile handset manufacturer went as high as €16.08. Later on, they fell as low as €15 before rising a bit before the close of trade. Meanwhile, Ericsson was down 0.9 percent to SKr23 ahead of its quarterly report, which is due to be released on Friday.

In the semiconductor sector, chip equipment maker ASML was 2.2 percent lower to €15.56 after a gain of over 6 percent yesterday after it released a positive quarterly report. Despite the report, Rabo Securities downgraded ASML’s shares from “buy” to “hold”.

Swedish engineering company Sandvik dropped 4.2 percent to SKr73.75 after its quarterly report failed to meet expectations. Elsewhere in the sector, Atlas Copco was down 2.5 percent to SKr176.50 after a disappointing guidance was released earlier this week.

In the pharmaceuticals sector, Roche added 3.3 percent to SFr214.90, its highest closing price ever, helped by a good quarterly report. Bear Stearns confirmed its “outperform” rating and SFr280 target share price for the drug maker. Dresdner Kleinwort did not change its “sell” rating, but raised Roche’s target share price from SFr170 to SF4180.

Advances in technology stocks and the banking sector took the FTSE Eurofirst 300 up by 2.2 percent on Wednesday to 1,299.19. It was the first day of gains after four consecutive days of losses for the 300.

In Italy, Banca Monte dei Paschi di Siena was 4.4 percent higher to €4.54 as new rumors circulated that Sanpaolo IMI might be interested in offering. Sanpaolo added 2.8 percent to €13.68. Nordea added 5.5 percent to SKr85.75 after it released a more positive quarterly report than had been expected. Credit Agricole was up 5.6 percent to €30.15 on the possibility that it would be the only bidder for Emporiki Bank of Greece, which dropped 3.7 percent to €25. Bank of Cyprus was rumored to be considering pulling out of the bidding over difficulties involving pension costs; it added 8.8 percent on the session to €7.14.

Among telecommunications companies, Nokia was 5.4 percent higher to €15.56 on an upgrade by Lehman Brothers, from “equal weight” to “overweight”, ahead of its quarterly report, due later in the day. Meanwhile, Ericsson gained 6.9 percent to SKr23.20 on news that it has secured a contract to build a GSM network for Brazilian telecom Vivo.

In the semiconductor sector, Infineon was up 3.2 percent to €8.73, while STMicroelectronics gained 4.9 percent to €12.35 and ASML advanced by 6.4 percent to €15.80 on record net profits in the second quarter.

In Europe on Tuesday the FTSE Eurofirst 300 ws down by 0.1 percent to 1,271.62. The decline came as investors remained concerned about the situation in the Middle East.

Brewers, however, had a good day. Belgian brewer InBev was up 2.3 percent to €38.19 on an earlier upgrade from “add” to “buy” from Dresdner Kleinwort, which cited coming higher profits in China. Carlsberg gained 2.6 percent to DKr416 as Morgan Stanley upgraded the Danish brewer from “underweight” to “equal weight”. Heineken advanced by 3.9 percent to €34.26 on raised target share prices from Merrill Lynch and Dresdner Kleinwort after it raised its full-year prediction for growth in profits. Dresdner Kelinwort upped Heineken’s target share price from €35 to €36, while Merrill Lynch increased it’s target for the brewer from €36.50 to €38.

Elsewhere in beverages, Coca-Cola Hellenic Bottling gained 2.9 percent to €24.60 after Coca-Cola in the United States reported higher than predicted profits in the second quarter. The Greek bottler is the second-largest Coca-Cola bottler in the world.

There were also gains in the engineering sector. Sandvik added 1.7 percent to SKr75.50, while Atlas Copco gained 2.5 percent to SKr166.50 after its second-quarter report said on Monday that profits were up by 32 percent.

Among the day’s losers was the automobile manufacturing sector. BMW dropped 0.9 percent to €37.70 after Deutsche Bank downgraded the carmaker from “buy” to “hold”. Daimler Chrysler was 1.3 percent lower to €37.07. Volkswagen declined by 1.4 percent to €51.56.