Equities markets saw significant gains on Thursday after two days of wide declines.

The FTSE Eurofirst 300 added 1.19 percent to 1,620.18. The IBEX gained 1.19 percent to 14,941.8 in Madrid, while the Paris CAC-40 was 1.7 percent higher to 6,103.05 and the Dax was up 1.96 percent to 8,053.43.

The engineering sector did very well on the day, with the best performance on both the Dax and in Paris.

In Frankfurt, Siemens (FWB: SIE; NYSE: SI) gained 3.87 percent to €110.82, while in Paris engineering and power generation group Alstom (Euronext: ALO) was 8.45 percent higher to €135.60.

Builders and those that furnish materials to them were higher in Paris.

Construction group Vinci (Euronext: EG) added 4 percent to €57.70, while cement and construction materials provider Lafarge (Euronext: LG) gained 2.1 percent to €134.54.

Other gainers included stock exchange operator Deutsche Boerse (FWB: DB1), which was 3.84 percent higher to ¥89.75 and chipmaker Infineon (FWB: IFX; NYSE: IFX) with a gain of 3.63 percent to €13.41.

In the oil sector, Total (Euronext: FP; NYSE: TOT) added 3.02 percent to €62.38.

The biggest loser on the CAC-40 was hotels operator Accor (Euronext: AC), which dropped 1.48 percent to ¥71.88.

On the Dax, the only decliner of the session was financial services group Marschollek (FWB: MLPG), which fell 0.2 percent to €15.22.

The FTSE Eurofirst 300 was lower in Monday, closing at 1533.15, a decline of 0.6 percent.

The Greek banking sector saw declines after a new report showed that use of household credit grew substantially in November, causing some investors to worry that with Eurozone interest rates rising loan defaults could reach worrisome levels. Alpha Bank dropped 1.2 percent to €24.02, while National Bank of Greece fell 1.3 percent to €38.60. EFG Eurobank was 2 percent lower to €29.10 and Bank of Piraeus was down 2.2 percent to €26.40.

Stock exchanges were lower after it was announced that stockholders in the London Stock Exchange had rejected US exchange operator Nasdaq’s bid for the company. Deutsche Borse dropped 2.2 percent to €157.45. Euronext, still in the process of closing a merger with NYSE Group, fell 4.2 percent to €85.95.

In the oil sector, a decline of 2 percent in the price of crude oil sent shares lower. Statoil was 0.6 percent lower to NKr162.25, hurt not only by lower prices but by a fourth quarter report that did not rise to expected levels. French oil company Total was down 1.2 percent to €52.10. Neste Oil dropped 2.9 percent to €23.70.

The semiconductors sector was mixed. STMicroelectronics dropped 1.4 percent to €14.53, but Infineon added 1.3 percent to €12.15 after last week’s announcement of new contracts and on new reports that private equity could be interested in bidding. Meanwhile, chip-making equipment manufacturer ASML dropped 2.7 percent to €19.16.

The FTSE Eurofirst 300 closed at its highest level in six years when it added 0.6 percent on Friday to end the session at 1,519.81.

The week saw big gains in more than one sector.  Deutsche Borse added 10.4 percent on the week to a record share price of €164.30, with one analyst saying that estimates of the stock exchange operator’s earnings growth for the year, at 10 percent, were conservative.

In the construction sector, consolidation possibilities brought big advances.  The news that holding company Artemis had purchased a 5.1 percent stake in French company Vinci sent Vinci’s shares 8.4 percent higher to €104.90.  In Spain, meanwhile, Sacyr-Vallehermoso added 10.2 percent to €48.32.

Deutsche Post gained 7.2 percent on the week to €23.98 on rumors that a private equity group was looking to buy at least part of the 30.6 percent stake owned by the German government, despite predictions of union and political opposition to such a bid.

In the Swedish banking sector, Nordea added 2.2 percent to SKr110.60 and SEB gained 7.5 percent to SKr237.00 on renewed rumors that the two banks could merge.

On the negative side, EADS dropped 2.7 percent during the week, to €24.39, after the aerospace firm issued its second profits warning in four months.  In the French energy sector, Suez was 5.8 percent lower to €38.01 after a withdrawn bid for the company, while Gaz de France dropped 6 percent to €33.73.

In Europe on Friday, the FTSE Eurofirst 300 added 0.4 percent on the session and 1.6 percent on the week to close at 1,510.44. It was a new six-year high for the index.

Despite the gains, there were big losses for some. Software group SAP dropped 7.7 percent on the session to €39. The decline was blamed on new data showing that license sales were down. The report moved Goldman Sachs to take SAP off its “conviction buy” list and to reduce its target share price from €49 to €39. The decline, the largest for the software developer in over four years, led to a 4.5 percent decline over the week despite gains earlier in the week.

The oil sector was lower on the week after crude oil prices fell by more than 7 percent. Total was down 1 percent to €52.20, while OMV dropped 1.8 percent to €39.30 and Repsol YPF fell 3.1 percent to €25.22.

Another of the week’s losers was Carrefour. The French retailer dropped 5.5 percent on the session to €44.20 on broker downgrades after reports that sales were lower than had been anticipated in the fourth quarter. JP Morgan reduced its recommendation from “neutral” to “underweight” and Commerzbank lowered its rating from “buy” to “hold”. Both brokers also reduced Carrefour’s target share price.

Gainers included Deutsche Borse which added 7.7 percent to €148.75 during the week after it revelaed positive news from its Clearstream unit and as rumors circulated that it could merge with a US exchange operator.

The FTSE Eurofirst 300 was up significantly on Thursday, adding 1.8 percent to close the session at 1,503.93.

Banks were higher on bids rumors and broker comments. After Dresdner Kleinwort implied that there was a possibility of merger activity in the Spanish banking sector, Santander and BBVA were both higher. Santander added 1.3 percent to €14.30, while BBVA gained 1.7 percent to €18.73. Swedbank as 5.2 percent higher to SKr262.50 when UBS repeated its “buy” recommendation and upped its target share price from SKr265 to SKr300.

Stock exchanges also did well on the session. Euronext added 3.8 percent to €98.50 on approval of its plans to merge with the New York Stock Exchange. Meanwhile, Deutsche Borse gained 6.3 percent to €150.20 on talk that it could also merge with an exchange operator in the US. The Chicago Mercantile Exchange has been mentioned as a possible merger partner.

Roche was 2 percent higher to SFr230.70 on higher profits in the fourth quarter by Genentech, in which the Swiss pharmaceutical company is majority stockholder. Genentech’s fourth quarter profits were up 75 percent on demand for its cancer drugs and higher sales of a new treatment for blindness in older patients.

In the aerospace sector, EADS added 0.8 percent to €25.26 even though UBS reduced its recommendation from “neutral” to “sell” and warned that shareholders earnings could be diluted by a possible equity issue by the company.

The FTSE Eurofirst 300 added 0.4 percent on Tuesday to close at 1,462.53 as merger rumors continued in the banking sector.

There were gains in the retail sector. Carrefour added 2 percent to €47.22 after Tesco decided to buy the other half of China-based supermarket chain Hymall. The move underscored the value of the French retailer’s interests in that Asian nation. Ahold was 3.9 percent higher to €7.81 on speculation about the Dutch retailer’s restructuring after it agreed to sell part of its interests in the US last month. Some hedge fund investors are urging Ahold to completely divest itself of US holdings.

In the banking sector, Nordea added 6.7 percent to SKr107 after it became known that Sampo of Finland purchased 12.8 million more shares of the bank in November. Bids rumors circulated although some analysts said that Sampo was simply looking for a better position before the Swedish government sells its stake in Nordea. Sampo added 3.1 percent to €20.20 on the speculation, while Svenska Handelsbanken added 0.5 percent to SKr192.50 and SEB gained 2.6 percent to SKr213.00.

Stock exchange operator Deutsche Borse dropped 2.1 percent to €134.22 on a downgrade from “add” to “hold” from West LB, which cited valuation issues as a reason for its move.

In the electronics sector, meanwhile, Philips Electronics was 0.7 percent lower to €27.72 after its joint venture in South Korea, LG.Philips LCD, dropped almost 8 percent after being looked at by authorities concerning allegations of price fixing.

The FTSE Eurofirst 300 was up on Monday on gains in the steel sector as it seemed that there could be a bidding war for Anglo-Dutch steel maker Corus that could translate into wider consolidation in the sector. The Eurofirst was up 0.6 percent to 1,457.09.

The steel sector was not the only one that gained on bids and rumors of bids, however. Among stock exchanges, Deutsche Borse was 3.1 percent higher to €137.10 on a meager hope that Euronext’s tie-up with NYSE Group might not be as firmly settled as had been thought, making room for a bid from the German exchange operator. Euronext added 2.9 percent on the session ahead of a December 19 vote by shareholders on the merger with NYSE.

Bids rumors also helped Continental after General Capital Group would not rule out another bid after a failed attempt to buy the German tire maker earlier in the year. Continental was up 2.6 percent to €89. 69.

With prospects shaping up for a bidding war between CSN of Brazil and Tata of India, Corus added 5.4 percent to €7.80 as analysts said that while the Tata bid is more favorable from an employee point of view, Corus is obligated to act in the interests of its shareholders, who would benefit more from acceptance of the CSN bid. CSN is currently offering 515p per share, while Tata’s bid stands at 500p per share, raised on Sunday from a previous 455p bid. In Mumbai, Tata dropped 6 percent on the increased bid.

Elsewhere in the sector, ThyssenKrupp gained 1.5 percent to €32.13 after its target share price was revised upward by Goldman Sachs. Salzgitter was 1.6 percent higher to €97.22, Mittal Steel added 2.5 percent to €32.80, and Acerinox of Spain was up 2.7 percent to €21.77.

In Europe on Tuesday the FTSE Eurofirst 300 added 0.7 percent to 1,439.93, helped out by a strong start to the trading day in New York.

Stock exchanges were higher on the session. Deutsche Borse added 2.2 percent to €127.25 on an upgrade from “hold” to “add” by West LB. Even though the broker dropped its target price for Euronext while reiterating its “hold” recommendation, the pan-European exchange gained 2.3 percent to €87.30 after European regulators provisionally approved its takeover by NYSE Group.

Among airlines, Alitalia was 6.4 percent higher on an announcement from the Italian government that it will sell at least 30.1 percent of its stake in the airline. Italian law will require whoever buys the government stake to make a cash offer for the rest of the carrier.

In France, EDF gained 2.6 percent to €53.35 as it continued to reap benefits from a ruling last Friday that in practical terms meant that French rates for electricity are likely to rise.

The pharmaceuticals sector was up on news about diabetes drugs. Sanofi Aventis added 3 percent to €67.85 after it said a weight-loss drug, Acomplia, could also help in the treatment of type-2 diabetes. Meanwhile, Novo Nordisk gained 4.3 percent to DKr464.50 on its claim that a long-acting insulin, Levemir, both helped blood sugar levels in those with diabetes but also helped them lose weight.

The FTSE Eurofirst 300 dropped 1.5 percent on Monday to close at 1,429.00. The declines was the Eurofirst’s furthest one-day fall in nearly six months.

Utilities were down after the announcement last week that the merger between Gaz de France and Suez was being delayed, as some hoped that Italian utility Enel might yet engineer a merger with Suez. Most analysts were skeptical of the possibility, and Enel dropped 1 percent to €7.59. Suez and Gaz de France were also lower, by 0.3 percent to €35.86 and by 0.6 percent to €32.27 respectively. Elsewhere in the sector, RWE dropped 0.6 percent to €86.05 even though it had gone as high as €90.81, an all-time high, earlier on rumors that Gazprom could be thinking about bidding.

Stock exchanges were also lower as investors took profits. Euronext dropped 3.4 percent to €92.25, while Deutsche Borse was 3.9 percent lower to €129.97.

The automobile manufacturing sector dropped on worries about the state of the US dollar. Volkswagen fell 1.6 percent to €80.01, while Peugeot dropped 2.5 percent to €46.78 and DaimlerChrysler was 2.8 percent lower to €44.25.

Tire makers were also lower, with Continental down 3.5 percent to €86.10 and Michelin dropping 4 percent to €65.20.

The FTSE Eurofirst 300 added 0.1 percent to 1,468.30 on Tuesday on light trade.

Among gainers on the day was Alitalia, which gained 3 percent to €0.986 on speculation that the Italian airline could hook up with international carriers.

Consumer goods company Henkel was 3.8 percent higher to €112.28 on a target share price upgrade from Merrill Lynch, which also repeated its “buy” recommendation citing growth in sales. The broker raised the German company’s target share price from €100 to €127.

Bancha Monte dei Paschi di Siena added 1.3 percent to €4.89 when French insurance company CNP Assurances revealed that it is interested in bidding for the Italian bank’s insurance unit, MPS Vita. CNP added 0.2 percent to €82.15 on the news.

Danone was 1.9 percent higher to €119.00 after Goldman Sachs issued a “buy” recommendation for the French foods group on the basis of growth that was outpacing the sector.

Luxury goods group Richemont added 1.4 percent to SFr66.65 on an improved full-year earnings forecast from Goldman Sachs. The upgrade came after Richemont announced on Friday that profits were up 22 percent in the first half.

Deutsche Borse was up 3 percent to €129.74 after speculation surfaced that it might be interested in bidding on Spanish exchange BME now that the German exchange has withdrawn its bid for Euronext. BME gained 7.4 percent to €29.95 on the rumors.