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 European equities markets were higher on Wednesday, aided by gains in the banking and oil sectors. The FTSE Eurofirst 300 added 1 percent to 1,528, its highest closing level in six years.

In the oil sector, Statoil gained 1.6 percent to NKr163.50 on comments from UBS that outlined the upside of an announced merger with Norsk Hydro. The broker upgraded its recommendation on Statoil from “neutral” to “buy” and hiked its target share price from NKr166 to NKr185.

Banks saw gains in several nations. In Spain, JP Morgan issued upgrades for both BBVA and Santander. BBVA added 1.4 percent to €19.35 after its recommendation was raised from “neutral” to “overweight”, while Santander was 2.3 percent higher to €143.49 on an identical hike in its rating.

In Italy, Morgan Stanley upgraded both Banca Monte dei Paschi di Siena and Capitalia from “underweight” to “equal weight”. Siena was up 0.7 percent to €4.9525 and Capitalia gained 2.3 percent to €7.02. Meanwhile, the broker added Banco Popolare di Verona e Novara to its model portfolio, sending the bank’s shares up 3.1 percent to €24.10.

Meanwhile, UniCredit’s announcement that it will buy out minority shareholders in German bank HVB Group and Bank Austria Creditanstalt send shares in both banks significantly higher. HVB gained 4.2 percent to €36.00, while Bank Austria was 4.7 percent higher to €131.50. UniCredit, which already owns 95 percent of both banks, was up 1.6 percent to €7.2050.

Among losers on the day was SAP. The software maker dropped 6.5 percent to €35.89 when it said that margins would be lower this year and failed to issue an outlook on license sales.

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.

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.

The FTSE Eurofirst 300 was up by 0.2 percent to 1,311.64 on Wednesday, led higher by the Italian banking sector, which was mixed but generally higher on the session.

Banca Intesa dropped 0.4 percent to €4.43 after early gains when its chairman said that continuing rumors that it would merge with Capitalia had no basis in fact. Capitalia, meanwhile, added 1 percent to €6.59 after going as high as €6.7650 earlier in the session, on its status as a possible takeover target. Other Italian banks thought to be possible bid targets include Banca Monte Paschi di Siena, which gained 1.1 percent to €4.63, and Banca Popolare Italiana, up 2.1 percent to €8.29. Analysts expect some consolidation in the sector at some point.

In the oil sector, Goldman Sachs issued upgrades for OMV and Norsk Hydro, sending share prices for both companies higher. Norsk Hydro was up 3.3 percent to NKr174 on an upgrade from “sell” to “neutral”, while OMV added 3.6 percent to €48.55 as its recommendation was raised from “neutral” to “buy”. In addition, UBS upgraded Norsk Hydro as well, from “neutral” to “buy”, and upped its target share price from NKr195 to NKr210.

On the negative side of the oil sector, Goldman Sachs reduced its recommendations for Neste Oil and Saipem, downgrading both companies from “neutral” to “sell”. The change in rating hurt Neste Oil, which dropped 0.3 percent to €2734, but Saipem still managed a gain of 1.2 percent to €18.20.

In Europe on Wednesday, the FTSE Eurofirst 300 was up 1 percent to 1,306.63. Despite the gain, the index was down 5.2 percent for the month, the largest monthly decline in over two years. The day’s advance came on gains in the telecommunications and steel sectors.

Banks were mixed on the day. Capitalia and Banca Intesa were both up on renewed rumors of a merger between the two Italian banks. Capitalia added 3.6 percent to €6.4650 and Intesa gained 2.2 percent to €4.5180. National Bank of Greece was also up, adding 6.4 percent to €32.24 on a positive first-quarter earnings report. Belgian bank Dexia, however, was down 1.8 percent to €19.16 when it said that it will purchase 75 percent of Denizbank in Turkey now, and will offer for the remaining 25 percent of the bank when it gets the approval of regulators.

The telecommunications sector was up after having performed badly since the beginning of the year. Telekom Austria added 0.1 percent to €17.41 after Deutsche Bank raised its rating from “hold” to “buy”. OTE (Hellenic Telecom) was up 1.8 percent to €17.30 after a positive earnings report and on positive comments from Dresdner Kleinwort Wasserstein, which reiterated its “buy” recommendation. Telefonica was up 2.4 percent to €12.77. Telenor gained 2.7 percent to NKr76.75 on the announcement that it has won a contract to provide automatic meter reading for a Nordic energy company.

Elsewhere in the sector, KPN was up 2.6 percent to €8.95, while Telecom Italia added 3.2 percent to €1.9910 and France Telecom gained 4.2 percent to €17.46.

In the steel sector, Corus added 2.2 percent to €5.70. While it reported that earnings in the first quarter were down from the same period last year, they were still better than had been expected. Arcelor, meanwhile, was up 1.4 percent to €33.30 even though shareholders are still in upheaval over its plans to merge with Russian company Severstal.

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.

European equities markets were up on the week, with the FTSE Eurofirst 300 gaining 0.8 percent on Friday and the same amount over the week to close at 1,354.22. Much of the gains came from the banking sector , which saw advances amid speculation about more consolidation among Italian banks.

Among the Italian banking sector, Capitalia gained 7.2 percent on the week to €6.85 and Banca Intesa was up 3.7 percent to €5.07 amid rumors that the two institutions were in talks. Elsewhere, Banca Monte dei Paschi di Siena advanced by 6.3 percent to €4.53 on speculation that it might be a takeover target.

French banks were up as well, with Societe Generale gaining 2.6 percent to €120 on a report that Citigroup could be interested in bidding for the French bank. French investment back was up 6.8 percent to €191.70, also on merger talk.

Franco-Belgian utility Suez was up 9.5 percent on the week to €34.17 as rumors said that Enel could be looking to challenge the merger deal between Suez and Gaz de France.

Finnish pulp and paper group UPM-Kymmene had the best week on the Eurofirst with a gain of 10.5 percent to €19.63 after it revealed a plan to cut jobs and close plants in an effort to increase profits.

German engineering group Linde did almost as well, gaining 10.3 percent to €72.31 when it agreed to purchase BOC group for $14 billion.

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.