Equities markets declined for a second straight day in Europe on Wednesday, but losses were not as steep as they were on Tuesday.

The FTSE Eurofirst 300 was 0.28 percent lower to 1,602.41. In Paris the CAC-40 fell 0.3 percent to 6,001.09, while the IBEX was down 0.39 percent to 14,766.2 in Madrid.

Meanwhile, the Dax was 0.83 percent lower to 7,898.54 in Frankfurt.

There was, in fact, only one gainer on the session on the Dax as pharmaceuticals and chemicals group Bayer (FWB: BAY; NYSE: BAY; TYO: 4863) added 1.43 percent to €55.39.

The best day in Paris came for hotels operator Accor (Euronext: AC), which gained 5.27 percent to €72.96 on rumors that it could be a bids target.

In the retail sector, Carrefour (Euronext: CA) was 0.9 percent higher to €53.89 after it reported strong sales.

Carmakers were lower on the day, hurt by the strength of the euro.

BMW (FWB: BMW) had the biggest loss of the day on the Dax as it dropped 1.61 percent to €39.73, while DaimlerChyrsler (FWB: DCX; NYSE: DCX; TYO: 7663) fell 1.55 percent to €67.45.

Truck maker Man (FWB: EDF1) was 1.44 percent lower to €110.28.

Banks were lower in Paris, with BNP Paribas (Euronext: BNP; TYO: 8665) down 0.91 percent to €85.80.

Elsewhere in the sector, Credit Agricole (Euronext: ACA) dropped 0.92 percent to €29.11 and Societe Generale (Euronext: GLE) was 0.95 percent lower to €133.73.

The worst performer on the day in Paris was power generator Alstom (Euronext: ALO), which fell 1.87 percent to €125.03.

Most European markets saw gains on Monday.

The main exception on the continent was the IBEX, which dropped 0.56 percent to 14,974.7 in Madrid.

In Paris, the CAC-40 was 0.03 percent higher to 6,104.39, while the Dax added 0.36 percent to 8,077.39 in Frankfurt.

The FTSE Eurofirst 300 added 0.35 percent to 1,625.52.

The telecommunications sector saw gains. In Paris, France Telecom (Eurofirst: FTE; NYSE: FTE) was up 1.62 percent to €20.73, while in Frankfurt Siemens (FWB: SIE; NYSE: SI), which has telecommunications interests among others, gained 1.8 percent to €111.06.

Airlines also saw gains. Lufthansa (FWB: LHA) added 1.01 percent to €20.98, while Air France (Euronext: AF; NYSE: AKH) was up 1.91 percent to €34.18.

In the steel sector, Mittal Steel (Euronext: MT; NYSE: MT) had the best day in Paris, adding 2.75 percent to €48.97, while in Frankfurt ThyssenKrupp (FWB: TKA; LSE: TKA) gained 1.61 percent to €46.08.

Carmakers were mixed on the session. While Peugeot (Euronext: UG; OTC: PEUGY) was 0.69 percent higher to €65.48 and DaimlerChrysler (FWB: DCX; NYSE: DCX; TYO: 7663) gained 0.95 percent to €69.09, Renault (Euronext: RNO) was 0.68 percent lower to €119.35.

In a related sector, tire maker Michelin (Euronext: ML) was up 0.54 percent to €106.12.

Utilities were lower in Paris, with Suez (Euronext: SZE; NYSE: SZE) dropping 1.28 percent to €41.46. Meanwhile, EDF (Euronext: EEN) had the worst day on the CAC-40 as it fell 2.08 percent to €76.31.

French banks also saw declines. Credit Agricole (Euronext: ACA) was 0.47 percent lower to €29.76, while Societe Generale (Euronext: GLE) fell 0.63 percent to €137.92.

The worst performer on the day on the Dax was drug maker Bayer, which was 1.32 percent lower to €55.93.

In Europe on Tuesday, the FTSE Eurofirst 300 added 0.98 percent to 1,460.47. Other European exchanges saw similar gains, with the Xetra Dax in Frankfurt gaining 0.92 percent to 6,595 and the CAC 40 up 0.97 percent to 5,437.13 in Paris.

The pharmaceutical sector was higher after Novartis (NYSE: NVS) gained approval from the US Food and Drug Administration for Tektura, a new blood pressure treatment that could generate as much as $1 billion per year in sales by 2010. Novartis added 4.9 percent to SFr70.10. Helped by this success and by analyst comment that pharma shares are too cheap, Merck (NYSE: MRK) gained 0.8 percent to €92.70 and Roche (SWX: ROG; OTC: RHHBY) was 0.9 percent higher to SFr216.

Peugeot’s (Euronext: UG; OTC: PEUGY) chief executive said at the opening of the Geneva car show that his company is not interested in purchasing DaimlerChrysler’s (FWB: DCX; NYSE: DCX; TYO: 7663) US Chrysler division. With no rivals voicing interest, analysts believe that any offers for the troubled carmaker will likely come from private equity and, indeed, rumors have a couple of private entities interested. Peugeot added 0.7 percent to €49.43, while DaimlerChrysler was 3 percent higher to €52. Meanwhile, Fiat (NYSE: FIA) gained 0.6 percent to €17.67 after Goldman Sachs repeated its “conviction buy” on the carmaker and raised its target share price from €17 to €22.

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.

In Europe on Thursday, the FTSE Eurofirst 300 dropped 0.1 percent to 1,545.98, hurt by declines in the banking sector. Brewers saw gains, however, on bids rumors.

With reports circulating that InBev is talking to US brewer Anhauser-Bush, and with analysts giving those rumors a good deal of credibility, the Belgian brewer added 4 percent to €52.80. Other European brewers were helped by the rumors, with Heineken gaining 2.3 percent to €40.26. Carlsberg was 2.7 percent higher to DKr615.

French banks were lower on the session. Societe Generale and BNP Paribas both were hurt by their quarterly reports after Societe Generale reported Wednesday and BNP issued its report today, saying that while net profits were above expectations, operating profits were weaker than had been hoped. SG dropped 1.7 percent to €135 while BNP fell 3.8 percent to €83.70. Elsewhere among French banks, Credit Agricole and Natixis were each 2.6 percent lower, to €32.25 and €21.48.

In the automobile manufacturing sector, DaimlerChrysler was 3.7 percent higher to €53.42 after it announced a restructuring for its US division and said that all options were on the table concerning its US operations, leading some to expect a spin-off or either a partial or full sale of the US unit.

The FTSE Eurofirst 300 added 0.8 percent on the session Wednesday to close at 1,547.93. The metals sector saw gains on an upgrade for ThyssenKrupp, while in the oil sector Total was up on a report of record earnings for 2006.

In the automobile manufacturing sector, DaimlerChrysler added 4.6 percent to €51.50 after it announced a three-year plan to return its US division to profitability.

Banks were mixed on earnings reports. Societe General dropped 1.6 percent to €137.30 when it said that net income in the fourth quarter barely missed expectations after earnings dropped in its French retail banking division. On the other hand, Commmerzbank added 0.6 percent to €32.05 on a report of record net profits and the announcement that it will raise its dividend by 50 percent. The German bank will also invest in its retail banking division.

In the oil sector, Total added 1.4 percent to €53.25. It raised its dividend by 15 percent after reporting that earnings were up 5 percent in 2006 to a record net €12.6 billion.

ThyssenKrupp added 6.6 percent to €38.79 on an upgraded target share price from Deutsche Bank. While raising the steel maker’s target from €41 to €43, the bank also repeated its “buy” recommendation. The upgrade also helped Arcelor-Mittal, up 2.8 percent to €37.31.

The FTSE Eurofirst 300, higher early in the session, ended 0.3 percent lower to 1,522.87. The Eurofirst was hurt late by a slow start to the New York trading day.

The semiconductors sector saw gains in the day. Infineon added 2.4 percent to €11, while STMicroelectronics gained 2.5 percent to €14.38. STM was helped by positive comments from brokers that took the focus off the chipmaker’s disappointing quarterly results, announced on Wednesday. WestLB said that the new figures should be looked at in a wider context and hiked STM’s target share price from €16 to €18.

Nokia added 5 percent to €16.26 after reporting record mobile phone sales in the fourth quarter and amid mixed broker sentiment. While Merrill Lynch is advising its customers to buy the cell phone maker, Dresdner Kleinwort is recommending that its clients sell the stock.

Automobile manufacturers declined on new of losses by Ford Motor. BMW fell 1.4 percent to €45.99. DaimlerChrysler and Porsche were each 2.3 percent lower, to €48.64 and €1,010 respectively, with Credit Suisse lowering Porsche’s rating from “outperform” to “neutral” and suggesting that investors take profits. Peugot was down 3.3 percent to €52.

Airlines also saw losses. Iberia fell 1 percent to €3.01, while Air France-KLM dropped 3.9 percent to €32 and Lufthansa was 5.6 percent lower to €20.76 after it said that passenger yields would not grow significantly this year.

In Europe on Monday, the FTSE Eurofirst 300 dropped 0.4 percent on the session to close at 1,525.97 after being unable to hold on to gains earlier in the day.

In the automobile manufacturing sector, DaimlerChrysler was 0.6 percent lower to €48.51 despite an upgrade of its target share price from €50 to €55 from JP Morgan.  The broker’s move was prompted by the belief that the carmaker could announce a plan to return Chrysler to profit when it announces results next month.

In the electronics sector, Philips Electronics fell 1.7 percent to €28.88 on mixed results in the fourth quarter.  According to the report, net profits were higher than had been anticipated on lower tax rates and one-time gains.  Sales, however, did not meet expectations.  Philips also raised its dividend for 2006.

Gains in oil prices led to losses in a couple of sectors.  Lufthansa dropped 3.2 percent in the airlines sector.  Meanwhile, in the chemicals sector, agrochemicals manufacturer Syngenta was down 2.8 percent to SFr233, while Rhodia fell 3.5 percent to €2.80.

Among producers of luxury goods, Swatch added 2 percent to SFr287.50 on the announcement that its sales were up by 12.3 percent in 2006.  Broker comments were positive, with Lehman Brothers and Credit Suisse reiterating recommendations of “overweight” and “outperform” respectively.  Credit Suisse said its target share price on the watchmaker, currently SFr300, was under review, while Lehman Brothers upped its target share price for the company from SFr270 to SFr315.

In the banking sector, Raiffeisen International added 3.7 percent to €113.64 on raised target share prices from Merrill Lynch and Morgan Stanley as optimism continued in relation to the bank’s business interests in Russia and in eastern Europe.  Merrill Lynch upped Raiffeisen’s targets share price to €140, while Morgan Stanley set raised its target for the bank to €83.80, citing the possibility that investors might be putting too much emphasis on its Russian exposure.

The FTSE Eurofirst 300 was 2 percent lower over the week, closing at 1,421.17 on Friday as a strong euro hurt several sectors. One analysis said that corporate profits could be down by up to 4.4 percent next year if the euro continues to strengthen. New data showing that the US economy is slowing down also hurt European equities.

In the automobile and transport equipment sector, most stocks dropped. The exception was MAN, which added 1.1 percent to €70.71 as rumors circulated that Scania could counter bid for the German truck maker while rejecting its overtures. Scania was 0.4 percent lower to SKr473. Elsewhere among carmakers, BMW fell 3.8 percent over the week to €41.20, DaimlerChrysler dropped 4.7 percent to ¥43.41, and Renault was 5.1 percent lower to €88.35.

The pharmaceuticals sector was lower as well. Bayer only dropped 0.4 percent to €38.83, but Roche fell 3.8 percent to SFr212.3 during the week.

Cell phone maker Nokia was 6.8 percent lower over the week to €14.91 on a reduced outlook on profits and negative comments from Dresdner Kleinwort, which said that Nokia’s net income could decline as much as 20 percent in 2007. On the other hand, positive comments from Morgan Stanley helped airline Lufthansa add 1.4 percent over the week to €19.49.

The FTSE Eurofirst 300 came back from a series of losing sessions to gain 1.3 percent on Wednesday, closing at 1,443.38. It was the best percentage gain for the 300 in two months.

The car and truck manufacturing sector was instrumental in the day’s gains. Even though Porsche said its share of Volkswagen was steady at 27.4 percent, rumors - which were denied by Porsche - persisted that it is getting ready to make a bid for VW, possibly in conjunction with private equity. Porsche added 3.8 percent to €887.39, while VW gained 4.3 percent to €85.50 as almost 16 million shares changed hands. VW has added 168 percent to its share value since April 2005.

Meanwhile, German truck maker MAN was 5.2 percent higher, to €70.79 on rumors that Scania, which MAN is trying to buy, could offer a counter bid. Scania dropped 0.9 percent to SKr465. Elsewhere in the sector, DaimlerChrysler added 1 percent to €44.40, Peugeot was 1.8 percent higher to €48.01, and Fiat gained 3.1 percent to €14.31.

In the utilities sector, Iberdrola added 4.4 percent to €33.48 after its bid for Scottish Power led Merrill Lynch to reconfirm its “buy” recommendation. On the other hand, WestLB cut its targets share price for Iberdrola to €34, citing its belief that the Spanish utility is paying too much for Scottish Power.