After reaching a six-year high on Monday, the FTSE Eurofirst 300 finished the week more or less exactly where it began, closing at 1,543.71 at the end of Friday’s session. Banks were mixed, as was the automobile manufacturing sector. Insurance was up.

In the insurance sector, Allianz (NYSE: AZ; LSE: ALV) added 5.4 percent to €164.07 after it reported strong results and offered positive guidance. France’s Axa (Euronext: CS; NYSE: AXA) was also higher, gaining 2.4 percent to €33.51. Elsewhere in the sector, Converium added 14.9 percent to SFr21.60 as investors hoped it could get a better offer out of Scor after it rejected the French reinsurer’s bid of SFr21 per share.

Among banks, ABN Amro (Euronext: AAB; NYSE: ABN) and Banco Santander (LSE: BNC; NYSE: STD) were higher but Italian banks Capitalia and Banca Monte dei Paschi di Siena declined. Santander added 0.3 percent on the week to €14.54, while Amro added 10 percent to €27.94 on sale rumors. Siena was 0.4 percent lower to €5.05, while Capitalia dropped 2.6 percent to €6.86.

In the automobile manufacturing sector, Volkswagen was up 8.1 percent during the week to €94.94 on strong results for the full year. DaimlerChrysler dropped 3.6 percent to €53.80 after VW said it was not interested in its US Chrysler division.

The FTSE Eurofirst 300 closed Friday at its highest level in five and a half years, adding 0.6 percent on the session and 2.8 percent higher on the week at 1,489.09. The Eurofirst has gone up 16.7 percent since the beginning of the year.

Banks were big gainers during the week. Nordea added 6.3 percent to SKr106.2 when Sampo of Finalnd was reported to have added to its stake in Swedish bank. Sampo gained 4.2 percent during the week to €20.38. ING was 6.8 percent higher to €33.68 and ABN Amro was up 7 percent to €24.30 on rumors that the two are in talks over a bid from ING.

Meanwhile, Raiffeisen International added 9.1 percent over the week on investor enthusiasm about its presence in central and eastern European markets. Citigroup began coverage of the Austrian bank with a “buy” recommendation, citing the potential value of Raiffeisen’s holdings in Russia and the Ukraine.

The retail sector saw gains, as well. Inditex, owner of the Zara fashion chain, gained 8 percent to €41.70 on the week on better than expected results in the third quarter. Ahold was 9.7 percent higher to €8.25 on rumors of a coming bid from private equity group KKR and on positive comments from UBS.

European equities markets were higher on Wednesday as the banking sector was mixed but mostly higher. The FTSE Eurofirst 300 closed at 1,471.57, a gain of 0.6 percent and just below a five-year high. In Germany, meanwhile, the Xetra Dax ended the session at 6,520.77, its highest closing level since February 2001.

French publisher Lagardere added 2.5 percent to €59.10 on an upgrade from “neutral” to “buy” from UBS, which said it sees the possibility of growth by the publisher. Elsewhere in France, utility EDF added 4.8 percent to €55.55, a record high share price, on hopes that tariffs will go up soon. EDF’s shares have risen more than 15 percent since the end of November. On the other hand, French airplane engine manufacturer Safran dropped 6 percent to €15.95 after announcing that it was investigating accounting problems in its defense security unit and dropping its full-year operating profit margin target to 4 percent.

Raiffeisen International was 6.1 percent higher to €107.13 on growth potential in central and eastern Europe, where the Austrian bank has extensive holdings. In addition, Citigroup began coverage of Raiffeisen with a “buy” rating and a target share price of €124. Among other Austrian banks, Erste Bank added 0.5 percent to €57.63. Erste also has exposure to eastern Europe.

Elsewhere in the sector, ABN Amro was 3 percent higher to €24.10 on the news that it has completed its purchase of Italian bank Antonveneta. There were also rumors that ING is interested in bidding for ABN, its larger Dutch rival. ING gained 2.2 percent to €33.16.

The FTSE Eurofirst 300 was 1.1 percent higher on Monday, closing at 1,463.96, 14 percent higher than where it began the year. The day’s gains had much to do with rumors of bids and earnings reports that pleased investors.

The insurance sector did well on the day. Allianz added 2.8 percent to €147.90 on positive comments from several brokers in the wake of its quarterly report, issued last Thursday with results that were better than had been anticipated. Citigroup and Credit Suisse both raised their target share prices for the German insurer, to €170 and €171 respectively, while Deutsche Bank also upped its target to €171. Lehman Brothers, Merrill Lynch, and UBS also had good things to say.

Reinsurers were up after a quieter than expected hurricane season in the Caribbean. While Munich Re was expected to announce that its third quarter net profit had risen by nearly 50 percent, Hannover Re added 2.57 percent to €33.94 and Swiss Re was 2.71 percent higher to SFr106.

In the banking sector, Banca Monte Dei Paschi di Siena added 3.5 percent to €4.95 on rumors of a possible bid from ABN Amro even though the chairman of ABN’s Italian arm denied that he had called it a takeover target. ABN was 1.1 percent higher to €23.02.

Ferrovial was 2 percent higher to €75.55 after the Spanish construction company said that while it’s property division isn’t officially for sale, it is still looking at offers.

Declines in the oil and automobile manufacturing sectors sent the FTSE Eurofirst 300 0.3 percent lower on Monday to 1,445.8. Carmakers were lower on profit taking, while oil stocks dropped on falling crude oil prices.

In the automobile manufacturing sector, BMW dropped 1.2 percent to €44.64 and Fiat declined 1.3 percent to €13.68. Peugeot was 1.5 percent lower to €44.33 after it cut full-year estimates after reports showed sales down in the first nine months of the year. Volkswagen fell 1.7 percent to €77.40 on mixed reviews from brokers. West LB reduced its recommendation from “hold” to “reduce”, but Goldman Sachs, UBS, and Deutsche Bank all raised VW’s target share price.

Declining oil prices sent Spanish company Cepsa down 1.3 percent to €60.90. Statoil was 2.2 percent lower to NKr165.25 even though it exceeded expectations in its third quarter report on previously high prices for crude. Neste Oil dropped 2.3 percent to €24.81, while Norsk Hydro’s lower than anticipated report on third-quarter profit sent its shares 2.8 percent lower to NKr148.75.

Elsewhere, banks were also lower on the session. Erste Bank of Austria did better than the rest of the sector, losing only 0.2 percent to €53.80 on a report of net profits up by 16 percent in the third quarter, which was just lower than had been expected. Trading income was down by 22 percent. ABN Amro also dropped 0.2 percent, to €22.95, after it said its net profit dropped by 5.6 percent in the quarter. Raiffeisen International dropped 0.7 percent to €89.60.

The FTSE Eurofirst 300 ended the week up 1.2 percent with a gain of 0.3 percent on Friday to close at 1,373.33. Car and truck makers were the center of attention for most of the week.

DaimlerChrysler dropped 5.6 percent on Friday to €39.18, and fell 2.4 percent over the week, after it cut its prediction for full-year operating profits by €1 billion, due largely to losses in the Chrysler division in the United States. It said Chrysler’s third quarter loss alone could be as high as €1.2 billion due to a decreased demand there for sports utility vehicles.

Elsewhere in the sector, the possibility that MAN will make a bid for Scania sent shares in those companies, and in Scania’s major shareholders, higher. Volkswagen, which votes 34 percent of Scania’s shares, was 4.6 percent higher this week to €65.01. Holding company Investor, with 19 percent of Scania’s shares, was 8.1 percent higher over the week, to SKr153.00. MAN added 7.6 percent to €64.00, while Scania B shares gained 17.6 percent to SKr424.50.

Elsewhere, German tire and auto parts manufacturer Continental was up 7.4 percent to €86.00 after the announcement of a proposed regulation change in the United States called for anti-roll mechanisms in all new cars by 2009 and electronic control stability technology in all cars by 2012.

In the banking sector, rumors that Bank of America is thinking about bidding for ABN Amro sent the Dutch bank 4.6 percent higher to €22.50.

The FTSE Eurofirst 300 was not helped on Thursday by bids rumors in the banking and automobile manufacturing sectors. The Eurofirst dropped 0.1 percent to 1,369.27 as investors continued to worry about inflation in the United States.

There were more details concerning an anticipated bid by MAN to acquire Scania. It was rumored that the German truck maker would submit a largely cash bid worth around €9.5 billion for its Swedish rival. The key still seems to be convincing top Scania shareholders Volkswagen and Investor to support the deal, which some say could be announced as soon as Monday.

Scania B shares dropped slightly on the session, by 0.4 percent to SKr154, but Volkswagen added 0.9 percent to €64.83, Investor gained 2.3 percent to SKr154, and MAN was 5.1 percent higher to €63.19.

In other mergers and acquisitions news, it was said that Netherlands bank ABN Amro could soon receive a bid from Bank of America. Such rumors have circulated before, and some analysts did not give them much credence. However, shares in ABN Amro were up 1.3 percent to €22.39. Also in the banking sector, there was speculation that a merger between SEB and Nordea might be coming up. The talk sent Nordea 3 percent higher to SKr95.25, while SEB added 3.8 percent to SKr203.50.

Shares in companies that deal in luxury goods were mixed. On the strength of a positive trading statement that had sales up 16 percent in the first five months of its fiscal year, Richemont gained 2 percent to SFr59.90. Meanwhile, Hermes International added 3 percent to €67.70 even though its first half net profits weren’t quite up to analysts expectations. Italian jeweler Bulgari, on the other hand, dropped 2.6 percent to €9.86 after its most recent guidance was not as optimistic as had been hoped.

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 was up just 0.1 percent to 1,399.35 on the day Monday as the oil sector was weak on declining crude oil prices but insurance companies and banks did well.

The oil sector was down 1.5 percent as a whole. Statoil dropped 3.1 percent to NKr20 not only on lower oil prices but on a quarterly earnings report that did not meet expectations even though its operating profits were up by a reported 44 percent. Norsk Hydro was down 3.2 percent to NKr940. OMV declined by 5.1 percent to €53.40 despite saying that it is in talks with Verbund, Austria’s biggest utility. Neste Oil was down 4 percent to €27.75. Oilfield services company Saipem was down 2.3 percent on the day to €20.16.

In the insurance sector, CNP Assurances was up 4.3 percent to €92.90 after last week’s upgrade from West LB. Axa, another French insurer, added 1.2 percent to €30.36 after Bear Stearns reiterated its “outperform” rating. Axa is expected to release its quarterly report on Thursday. Meanwhile, Merrill Lynch raised its target share price on Zurich Financial from SFr350 to SFr365, sending Zurich up 1.9 percent on the day to SFr315.

Credit Suisse was up 0.3 percent to SFr77.90, Deutsche Bank added 0.4 percent to €99.20, and UBS was up 1.1 percent to SFr150.60 in a day of advances in the banking sector. ABN Amro gained 1.7 percent to €23.39, while UniCredit was up 1.9 percent to €6.22. But the star performer of the day was Banca Monte dei Paschi di Siena. On upgrades from Credit Suisse and Morgan Stanley, the Italian bank gained 3.5 percent on the day to €4.8760. Credit Suisse upped its rating on the bank from “neutral” to “outperform” on what it called its “restructuring potential”. Morgan Stanley based its upgrade, from “underweight” to “equal weight” on good earnings coupled with cost cutting and reduced credit charges.

The FTSE Eurofirst 300 added 0.26 percent on Wednesday to close at 1,390.96. Earnings news from several sectors helped the Eurofirst stay in positive territory.

The semiconductor sector did well after Infineon reported its first profit in four quarters, on its automotive, industrial, and memory units. The German chipmaker was up 0.9 percent to €9.59. Elsewhere in the sector, Philips added 2.7 percent to €27.74, Siemens gained 2.3 percent to €79.75, and Micronas Semiconductor was up 1.2 percent to SFr33.40 despite downgrades from a number of brokers. Only STMicroelecctronics had a notable decline, losing 3.9 percent to €15.12 despite reporting better than anticipated quarterly results recently.

The banking sector was mixed. Despite a 12.1 percent gain in net profits in the first quarter, ABN Amro was down 2.5 percent to €24.25. But Italian bank Capitalia was up 2.5 percent to €6.93 on merger rumors.

A 15 percent rise in sales in the first quarter sent Swiss pharmaceuticals company Roche up 0.3 percent to SFr189.40. Much of the upswing in sales were on increased demand for Tamiflu and cancer drugs. Roche said it expects sales and earnings to rise even more as the year progresses. Elsewhere in the sector, GPC Biotech added 4.7 percent to €13.58 on a recommendation that it continue late-stage trials on a prostate cancer drug it is developing. The news brought an upgrade from “hold” to “buy” from West LB, which also raised the drugmaker’s target share price from €14.1 to €15.7.