The FTSE Eurofirst 300 was down by 0.3 percent on the session Thursday as a mixed banking sector was in focus. Airlines were also mixed.

Alitalia was 0.1 percent lower to €0.95 on rumors that it wants to merge with Air France-KLM after it said it would announce a plan soon to return to profits. Meanwhile, Air France-KLM added 2.9 percent to €21.30 after it said that its first-quarter profits were up by 84 percent.

Among banks which saw gains, Piraeus Bank was 0.1 percent higher to €20.42 Banca Popolare Italiana was up by the same percentage to €9.86. Banca Popolare di Verona e Novara added 3.6 percent to €23.20 on merger talks, while National Bank of Greece advanced by 3.9 percent to €32.40 after it reported that its first-half profit was up by 65 percent.

Agriculture Bank of Greece was flat at €4.12 even though Deutsche Bank raised its target share price from €4.70 to €4.90. Meanwhile, Credit Agricole dropped 2.4 percent to €31.71 on investor concerns over the merger in Italy of Banca Intesa and Sanpaolo. Agricole holds 18 percent of Intesa. In Belgium, KBC dropped 6.5 percent to €84.05 on a caution that its second half might not live up to performance in the first half. Fortis reduced its recommendation on the banking and insurance group from “buy” to “hold”.

Elsewhere in Europe, Thales added 0.4 percent to €33.92 after Merrill Lynch upgraded the defense electronics group from “neutral” to “buy” on the basis of strong orders. On the other hand, in the semiconductors sector, STMicroeletronics dropped 2.2 percent to €12.85 on a downgrade from “hold” to “sell” from Citigroup.

Rumors of mergers in Europe’s aerospace and defense sector sent European equities higher on Tuesday even though the oil sector declined as crude oil prices continued to drop. The FTSE Eurofirst 300 ended the session at 1,367.4. 0.2 percent lower.

Defense electronics company Thales and airplane engine manufacturer Safran were both said to be interested in bidding for French aeronautical supply company Zodiac. While Zodiac denied the rumors, all three companies saw gains on the session. Thales added 2.8 percent to €33.67, while Safran gained 4.5 percent to €16.79 and Zodiac was 6.8 percent higher to €47.69. In addition Alcatel, owner of 10 percent of Thales, was up 1.2 percent to €9.61.

Among oil companies, Cepsa dropped 2.1 percent to €55.50, Statoil declined by 3.2 percent to NKr168.50 and OMV was 3.7 percent lower to €41.25.

The semiconductors sector was helped by a prediction from Japanese company Elpida Memory that its sales could double this year. Infineon was 1.6 percent higher to €9.17 and ASML added 1.9 percent to €16.78. A reconfirmation of Merrill Lynch’s “buy” recommendation sent STMicroelectronics up 2.1 percent to €12.96.

In the transport sector, Danish container shipper Moller-Maersk added 3.1 percent to DKr46,900 as it said that its net profits in the first half dropped less than they had been expected to decline.

Drugmaker Bayer was down 0.7 percent to €39.26 even though its second quarter core earlings were up 14.1 percent, more than had been forecast. Elsewhere in the pharmaceuticals sector, Roche added 0.5 percent to SFr226.80 and Novartis was 0.6 percent higher to SFr70.50, both helped by the approval in Switzerland of Lucentis, a blindness treatment.

Banks were mixed on Monday in Europe as mergers and acquisition talk carried over from last week. Meanwhile, gains in technology stocks helped lead the FTSE Eurofirst 300 up by 0.4 percent to 1,364.89. Oil companies were down as crude oil prices fell again.

European oil companies were lower after crude oil prices fell on a reduced chance that there would be any damage to oil interests in the Gulf of Mexico from the current storm in the region. Norsk Hydro was 0.9 percent lower to NKr167, while Statoil dropped 1.1 percent to NKr174.

In the semiconductors sector, STMicroelectronics added 1.4 percent to €12.70. Infineon gained 2 percent to €9.03.

Banca Intesa and Sanpaolo IMI were down slightly after last week’s gains on the strength of a proposed merger as shareholders began to have doubts about the deal worked out by the boards of the two banks in a Saturday meeting. Sanpaolo was 1.4 percent lower to €15.87, while Intesa dropped 1.6 percent to €4.99.

Spanish bank Santander, which owns 8.4 percent of Sanpaolo, added 0.7 percent to €12.08. Meanwhile, it was said that Credit Agricole, which owns almost 18 percent of Intesa, was trying to set terms for the deal, especially surrounding the issue of branches to be sold after any merger. Agricole added 1 percent to €32.75.

Elsewhere in the banking sector, Deutsche Postbank was 3.1 percent higher to €62.01 after it was said that Deutsche Post was ready to sell its 50.1 percent holding. On speculation that Deutsche Bank might be interesting in buying, Deutsche Bank added 0.4 percent to €89.02. Deutsche Post gained 2.5 percent to €19.57 on the speculation.

Greek banks, however, were down on the day after a terrorist attack at a Turkish coastal resort. A number of Greek banks have holdings in Turkish banks. EFG Eurobank, which owns EFG Istanbul Securities, and Alpha Bank each dropped 1.2 percent to €23.98 and €20.86 respectively. National Bank of Greece, which finalized its purchase of Finansbank of Turkey just last week, declined by 1.8 percent to €30.50.

Banks were in the spotlight in Europe again on Friday, sending the FTSE Eurofirst 300 0.1 percent higher on both the session and the week, to close at 1,359.21.

The major news of the week was a possible merger of Banca Intesa and Sanpaolo IMI in Italy. It was learned Friday that the boards of the two banks will meet on Saturday to discuss the possibilities for a deal. Many major shareholders have already expressed approval of the idea, including Credit Agricole, Intesa’s biggest shareholder. Additionally, analysts predicted a minimum of regulatory complications for such a merger. Santander, owner of 8.4 percent of Sanpaolo had no comment, except to say that a sale of its stake would bring it a €1.2 billion capital gain.

Credit Agricole was 1.4 percent higher on the week to €32.44, Intesa gained 6.4 percent to €5.066, and Sanpaolo added 9.4 percent to €16.101. Santander, meanwhile, dropped 0.7 percent to €12.

If the Intesa/Sanpaolo merger materializes, some analysts estimate that up to 300 branches could be sold, with Capitalia and UniCredit as possible purchasers. This news produced mixed results as Capitalia added 5.3 percent to €6.98, but UniCredit declined by 3.4 percent to €6.093.

All of the mergers and acquisitions speculation coming out of Italy heightened talk of takeovers in the wider European banking sector. In France, Natexis Banque Populaires was 2.6 percent higher to €202.30. Commerzbank, a frequent target of takeover speculation, was up 5.3 percent to €27.12.

The FTSE Eurofirst 300 was 0.4 percent higher to 1,357.94 on Thursday as much of the Italian banking sector saw gains on the day. The success of the sector also sent the S&P/MIB index in Italy up by 1.2 percent to 37,733.

The major exception to the gains in Italian banks was UniCredit, which was 0.4 percent lower to €6.207. Banca Intesa and Sanpaolo IMI were both higher on news that they are in talks toward a merger which, if completed, would create Italy’s second largest bank, behind UniCredit. Intesa was 7.6 percent higher to €5.025, while Sanpaolo added 6.1 percent to €15.558. Elsewhere in Italy, Mediobanca was up 5.1 percent to €17.064 and Capitalia advanced by 2.9 percent to €6.763.

Other gainers included Swatch, which added 4.3 percent to SFr47 on higher profits and sales. Credit Suisse issued positive comments on the Swiss watchmaker. In the telecommunications equipment sector, Ericsson added 0.9 percent to SKr22.90 on the announcement that it had secured a $1 billion contract with Indian telecom Bharti Airtel to upgrade and expand its network. EADS gained back part of its losses earlier in the week that were due to concerns over delays in two big development projects, adding 2.5 percent to €22.60.

The oil sector saw declines after gasoline inventories in the United States rose unexpectedly last week. Statoil dropped 0.9 percent to NKr176, while Neste Oil declined by 1 percent to €25.42.

Cement maker Holcim dropped 1.2 percent to SFr98 even though profits in the first half were up b y 44 percent. Holcim’s German rival Heidelberg Cement also dropped 1.2 percent, to €97.50, while Lafarge dropped 0.3 percent to €99.30. All were affected by the news out of the United States on Wednesday that house sales are down, raising concerns about construction markets around the world.

Indications from the United States of a slowing economy there affected European markets, sending the FTSE Eurofirst 300 0.6 percent lower to 1,353.26 on Wednesday.

Further news from the US in the form of a revenues warning from National Semiconductor, send the European semiconductors sector lower. ASML and Infineon each dropped 1.1 percent to €16.41 and €8.66 respectively. STMicroelectronics fell by 1.5 percent to €12.44.

In telecommunications related sectors, equipment makers were lower, as were most telecoms operators. The exception was Telekom Austria, which added 2.5 percent to €18.97. Deutsche Telekom dropped 0.6 percent to €11.50 after HSBC reaffirmed its “underweight” recommendation and dropped its target share price to €10.20, while France Telecom was 1 percent lower to €16.42. Among equipment makers, Nokia was down 2 percent to €16.45, while Ericsson dropped 2.2 percent to SKr22.70.

EADS fell 2.2 percent to €22.05 after rumors that the aerospace company was running behind by at least two years on the development of its Airbus A400M military transport. Recently, EADS was hurt by reports of delays on its A380 superjumbo passenger jet.

Among gainers on the day was Nestle, which added 2.3 percent to SFr417.75 after going as high as SFr419.50 during the day, a record high, after it reported better than expected first half results.

The FTSE Eurofirst 300 was 0.1 percent lower on Monday, to 1,356.39, reversing last week’s trend of gains. Among the sectors showing declines were semiconductors, and carmakers, all of which are strongly export-oriented.

Oil stocks gained on the session, however, as crude oil prices were back on their way up. Neste Oil was 1.6 percent higher to €25.71, while Norsk Hydro was up 3 percent to NKr173 and Statoil added 3.2 percent to NKr177.

Among semiconductors, Phillips dropped 0.8 percent to €26.22, while STMicroelectronics and Infineon each fell 1.5 percent, to €12.59 and €8.68 respectively. In related stocks, software group SAP was 1.2 percent lower to €145.38.

The automobile manufacturing sector was also lower on the session. Volkswagen dropped 0.6 percent to €63.44. Renault, BMW, and DaimlerChrysler each were 0.9 percent lower, with Renault at €89.90, BMW at €39.79, and DaimlerChrysler to 41.06. The decline for DaimlerChrysler came after a German court ordered it to pay more in a shareholder dispute going back to the merger between Dailmer and Chrysler in 1998. Porsche fell 14 percent to €787.50.

Elsewhere, utilities Suez and Gaz de France were lower on speculation that their merger might yet not be completed. Gaz de France was 0.7 percent lower to €28.60, while Suez dropped 0.8 percent to €32.68.

Bids news were in focus in Europe on Thursday, taking the FTSE Eurofirst 300 up by just 0.1 percent to 1,360.8. Technology stocks were higher once again, while oil saw declines as crude oil prices slipped further.

In the semiconductor sector, STMicroelectronics added 2.6 percent to €12.79 and ASML gained 3 percent to €16.68, while in the telecommunications equipment sector Ericsson was 2.2 percent higher to SKr23.50.

Among oil companies and related service providers, Total fell 0.8 percent to €53.20, while Saipem dropped 1.8 percent to €17.39. Neste Oil declined by 2.5 percent to €24.97, while Statoil was 2.6 percent lower to NKr170.

In the automobile manufacturing sector, Volvo was 5 percent higher to SKr401.50 amid rumors that a group of investors would enter a bid or force the carmaker to return cash to its shareholders. Both Renault, which owns 20 percent of Volvo, and German company Man denied involvement in the rumored moves and both added 2.7 percent on the session to €90.75 and €60.10 respectively.

Wienerberger bid 216p per share for UK rival Baggeridge Brick, sending the Austrian brick maker’s shares 0.8 percent higher to €37.40. Irish brick maker CRH, meanwhile gained 0.7 percent to €25.59.

In the insurance sector, Zurich Financial dropped 1.9 percent to SFr282.50 even though a new report showed that its net profits were up by 9 percent in the first half of the year. The decline came on the news that written premiums were down more than had been expected.

Gains in recently ailing technology sectors helped the FTSE Eurofirst 300 higher on Wednesday. The Eurofirst added 0.3 percent to 1,359.59. Banks exposed to emerging European economies also did well.

Raiffeisen International, the Austrian bank that bought Impex Bank of Russia earlier in the year was 4.5 percent higher to €71.26. Meanwhile, National Bank of Greece, which purchased Turkish bank Finansbank, gained 3.3 percent to €32.24 and Erste Bank added 2.7 percent to €46.89. Erste has spent over €6.3 billion in acquiring east European holdings since the beginning of the decade.

In the telecommunications equipment sector, Ericsson was 1.8 percent higher to SKr23 on positive comments from Dresdner Kleinwort. Elsewhere in the sector, Nokia and Alcatel each added 2.8 percent to €16.48 and €9.47 respectively.

Phillips Electronics was 0.1 percent higher to €25.94 after it said it would sell Enabling Technologies Group, which manufactures components for industrial equipment, to VDL Groep. Phillips has been in the process of restructuring for some time and comments from Merrill Lynch indicated that there was probably more to come.

In the utilities sector, Eon dropped 0.1 percent to €99.89 even though Deutsche Bank repeated its “buy” recommendation and increased its target share price from €105 to €110.

Down early in the day, the FTSE Eurofirst 300 managed to recover to close 0.9 percent higher to 1,355.41 on a slow day when some European markets were closed for the Assumption Day holiday.

Stocks in technology sectors benefited from comments issued by Morgan Stanley. Among software companies, SAP added 2.7 percent to €143.08. STMicroelectronics was 4.1 percent higher to €12.29, while in the telecommunications equipment sector Ericsson gained 4.2 percent to SKr22.60.

The pharmaceuticals sector was up on the day. Novartis was up by 1 percent to SFr69.95 even though its Sandoz generics division could be a target of a lawsuit by Sanofi-Aventis over unauthorized manufacture of generic copies of Plavix. The gain for Novartis came on a reconfirmation of Dresdner Kleinwort’s “buy” recommendation. Sanofi was also up, adding 2.5 percent to €70.30.

Among banks, UBS was 3.4 percent higher to SFr68.30 on a second quarter report that showed a 47 percent gain in net profits, well above what had been expected.

In the chemicals sector, Akzo Nobel added 4 percent to €44.35 on the news that it will ask shareholders to approve a spinoff of its pharmaceuticals unit and to make 30 percent of the new company available on Euronext in 2007.