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.

Mergers and acquisitions activity drove the European markets again on Monday, with the FTSE Eurofirst 300 down, but only by 0.19 point to 1,396.26 after rising to 1,402.90 during the session.

In the retail sector, Ahold was 0.1 percent lower to €8.37 after early gains after it was reported that private equity could be interested in its US food service operations. The reports said that the Dutch retailer is thinking about either selling or floating its US business. It is also currently in discussions with Delhaize concerning a possible merger.

Politics were also a factor in at least some sectors. Telekom Austria dropped 7.8 percent to €18.35 on a downgrade from “buy” to “neutral” by UBS, which also lowered the telecom’s target share price from €23.80 to €21.40 in the wake of an apparent election win by the Social Democrats. Bear Stearns, however, did not change it’s “outperform” rating even though it acknowledged that the telecom could suffer weakness in the near future due to the election results.

Utilities remained in focus as M&A rumors continue in the sector. Endsea was 1.2 percent lower to €33.15, but Enel gained 0.2 percent to €7.21, Eon was up 0.3 percent to €93.76, and RWE added 1 percent to €73.50. In addition, Energias de Portugal advanced 2.6 percent to €3.51 although it denied reports that it was thinking of attempting a merger with Gas Natural, which added 1.3 percent to €29.12.

Continuing worries about interest rates around the world sent European equities markets lower on Tuesday. The FTSE Eurofirst 300 dropped 0.7 percent to 1,269.90.

The oil sector saw substantial gains, however, as crude oil prices began to rise again. Eni gained 2.1 percent to €22.53, while OMV added 3.7 percent to €44.40 and Statoil was up 4.8 percent to NKr175.

Utilities were down during the day. Suez was down 0.4 percent to €30.30 even though UBS raised its recommendation on the company from “neutral” to “buy”. Gaz de France, meanwhile, was 0.6 percent lower to €25.55. The French government has postponed the bill that would allow the merger between Suez and Gaz de France until September. Meanwhile Enel, the Italian utility, dropped by 1.1 percent to €6.575. Some analysts believe that Enel is considering a bid for Suez.

Shipper AP Möller-Maersk B shares were the biggest decliners of the day, falling 9.3 percent to DKr43,000 on a reduced profits forecast for 2006 on disappointing growth in its container shipping unit. German tourist and shipping group Tui dropped 3.6 percent to €14.96 despite maintaining its full-year predictions for its container division.

European tire manufacturers were down after Japanese tire maker Bridgestone cut its profits forecast for this year by 35 percent because the cost of raw materials has risen. Michelin declined by 2.6 percent to €45.82, while Continental fell 2.9 percent to €77.51.

European equities markets saw gains on Thursday as many of the stocks that have seen the biggest losses have turned around to see substantial gains. The FTSE Eurofirst 300 added 2.3 percent on the day to 1,268.44.

Automobile manufacturers were up on the day after new data on car registrations in Europe was released. BMW added 3.3 percent to €37.75, while Fiat was up 4.9 percent to €10.234 and Volkswagen gained 5.1 percent to €53.36.

Higher prices on crude oil and metals helped companies that deal in those commodities to gains. Norsk Hydro, with activities in both oil and aluminium, was up 9.3 percent to NKr164. Statoil advanced by 6.2 percent to NKr164.

Banks were up as well. National Bank of Greece added 9.5 percent to €29.02; it had dropped almost 10 percent since the first of June. Meanwhile, Commerzbank gained 4.4 percent to €26.92 as Deutsche Bank upgraded it to “buy” and said that its significant loss in share price recently was more than could be justified.

Utilities were mixed. Gaz de France and Suez, which have been planning a merger, each added 1 percent, to €26.17 and €29.97 respectively. Deutsche Bank commented that political support for the deal has receded in France and consequently it would likely not happen. Italian utility Enel, which has bid for Suez, declined by 0.1 percent to €6.993.

The European equities markets saw steep declines on Thursday on sell-offs. They were not alone, as Asian markets and the markets in London also fell substantially. The FTSE Eurofirst 300 dropped by 2.4 percent on the day, to close at 1,257.6. It was the fifth session in the past month in which the Eurofirst declined by more than 2 percent in a day. Elsewhere, the Xetra Dax and the CAC 40 each lost 2.9 percent by the close of the trading day.

Utilities were mixed, with Suez up 0.2 percent to €30.20 but down from where it had been earlier in the session. Gaz de France was 0.9 percent lower, however, to close at €26.19, while Enel dropped 0.5 percent to €7.09.

The oil sector saw significant declines as crude oil prices dropped below the $70 per barrel level. OMV lost 8.1 percent to SKr174, while Norsk Hydro declined by 7.9 percent to NKr152.50 and Neste Oil was down 6.8 percent to €23.73.

Automobile manufacturers were also down on the day. BMW lost early gains on the news that sales had risen by 5.5 percent in May to close 0.7 percent lower to €37.50. Elsewhere in the sector, Volkswagen dropped 0.9 percent to €51.43, Renault was down 1.5 percent to €84.20, and DaimlerChrysler fell 2.3 percent on the day.

Airlines were mixed. Air France dropped 2.4 percent to €15.96, while Lufthansa was down 0.7 percent to €13.60. On the other hand, Ryanair added 3.5 percent to €6.87 on its full-year report and on the drop in crude oil prices.

In Europe on Wednesday the equities markets saw advances, with the FTSE Eurofirst 300 up 0.7 percent to 1,289.1 and Germany’s Xetra Dax adding 0.8 percent to 5,543.93. The Dax was helped by an announcement by Deutsche Borse that it will make it easier for companies to list on the Dax. The change means that that companies will not need to be registered in Germany to list there, but only must be headquartered there.

European aerospace company EADS has said it would pursue a listing on the Dax, sending its shares up 4.1 percent to €26.75. EADS has headquarters in both Paris and Munich.

Utilities were up on the day, largely on mergers and acquisitions issues. In the utilities sector, Suez, working on a merger with Gaz de France, was up 3.3 percent to €30.15 after Enel of Italy said that it was still interested in pursuing a deal with Suez. Enel gained 0.9 percent to €7.12, while Gaz de France added 0.2 percent to €26.43.

Endsea, the Spanish electrical group, was up 2 percent to €26.20 after Credit Suisse raised its target share price from €28.50 to €29.50. Gas Natural, a Spanish rival, and Eon of German are currently in a bidding battle over Endsea.

In the telecommunications sector, France Telecom said it will sell its 54 percent share in PagesJaunes, a directory publisher. The sale will raise up to €3.4 billion for FT, which is rumored to be in talks, joined by private equity group Carlyle, to purchase Austrian mobile company One. Other rumors have FT interested in purchasing a stake in Belgium’s Mobistar. All the talk sent PagesJaunes 1.1 percent higher to €22.77, while France Telecom added 2.3 percent to €17.60.

In Europe on Thursday, the FTSE Eurofirst 300 dropped 0.1 percent on the day to close at 1,376.57, down for the first time on over two weeks of trading sessions. On the other hand, Frankfurt’s Xetra Dax gained 0.3 percent to 5,947.11 several German companies saw advances on the day.

Utilities were down as merger talks remained in the news. Italy’s Enel dropped 0.7 percent to €7.02 despite a 48 percent gain in net profits for the full year and the announcement of an increased dividend. Suez also dropped 0.7 percent to €34.37, while Gaz de France declined by 0.9 percent.

Banks were up, led by Commerzbank, which added 2.9 percent to €31.94 on an upgrade to “buy” from UBS. Goldman Sachs raised its earnings predictions on several Nordic banks, sending their shares up as well. SEB gained 2.5 percent to SKr186.50, while Nordea Bank was up 1.3 percent to SKr95, Swedbank added 1.2 percent to SKr213.50, and SHB rose 0.5 percent to SKr211.

Swiss watchmaker Swatch lost 2.2 percent to SFr220.10 on a profits report that did not meet expectations.

Among the companies that helped the Xetra Dax on the day were Schering, Lufthansa, and Infineon. Chipmaker Infineon gained 8.5 percent to €8.92, while pharmaceutical company Schering was up 2.7 percent to €85.23 on reports that Bayer was thinking about bidding for the company, which is already facing a hostile takeover attempt from Merck. Lufthansa added 5.4 percent to €14.52 on the announcement that it’s full year operating profits were up by 51 percent.

Mergers and acquisitions again took center stage as European equities markets dropped on Wednesday, with the FTSE Eurofirst 300 down to its lowest close in three weeks, dropping 0.8 percent to 1,333.17.

Utilities were still in the midst of a round of bids and counter bids. The board of Enel met to consider how to react to a planned merger between Suez and Gaz de France, including mulling a possible bid for Suez. Suez gained 3.2 percent on the day to €34.07, while Enel lost 0.7 percent to €6.853 and Gaz de France dropped 0.4 percent to €29.29.

Elsewhere, Dutch media group VNU agreed to be purchased by a group of private equity firms, although one asset management company holding around 2 percent of VNU’s shares said it would reject the bid and asked VNU’s board to let shareholders vote on a new sale process. Other shareholders were unlikely to support the request. VNU closed slightly lower at €28.75.

In the pharmaceuticals sector, up 1.8 percent as a whole, Sanofi-Aventis and Novartis were both higher after Morgan Stanley called stocks in the sector “very cheap”. Sanofi was up 2.5 percent to €72.65, while Novartis advanced by 1.1 percent to €71.35.

Hotel group Accor, meanwhile, dropped 7.4 percent to €47.47 after investors were disappointed by a reduced dividend and no clear guidance to where the company is headed.

The European equities markets saw advances on Monday as the FTSE Eurofirst 300 gained 0.61 percent to 1,330.15. Mergers and acquisitions continued to be in the spotlight.

In the utilities sector, Suez, which agreed to merge with Gaz de France last week, was the target of rumors that it could be a takeover target for Italy’s Enel. Suez gained 4.6 percent to €32.64 on the news. Gaz de France was up 0.8 percent to €29.23. Enel dropped 0.2 percent to €6.887.

German engineering and industrial gasses company Linde saw an advance on the news that it has agreed to purchase the UK’s BOC Group for €11.6 billion ($14 billion). Linde was up 7.5 percent to €70.45 on the news and after West LB reinterated its “buy” recommendation and raised Linde’s target share price to €95 from €79. BOC fell a bit to £15.43.

The news that AT&T has plans to buy BellSouth in the United States led to consolidation expectations in the European telecommunications sector. Dutch telecom KPN was up 6.2 percent to €9.44. Telecom Italia was up 3.2 percent to €2.392. Meanwhile, Deutsche Telekom advanced by 2.4 percent to €13.96 and France Telecom added 2.5 percent to €18.60.

Elsewhere, German steel and engineering group ThyssenKrupp gained 5 percent to €22.20 on the report that it is nearly ready to sell its automotive division in order to purchase Canadian steel maker Dofasco. The gain came even though ThyssenKrupp denied the report.

European equities markets were up in mid-afternoon trade on Friday, with the FTSE Eurofirst up 0.2 percent to 1,358.08. Additionally, Germany’s Xetra Dax was up 0.1 percent to 5,861.5 and the CAC 40 in Paris gained 0.4 perent to 5,062.2

Companies related to food production and sales were mixed on the day. Danone was up 2 percent to €96.95 on an upgrade from “equalweight” to “overweight” from Morgan Stanley coupled with a new share price target of €108. Earnings growth for the company was predicted to reach the mid-teens in the next two years. Food retailer Ahold, the fourth largest in the world, was also up, by 1.3 percent to €6.99 as it said it is thinking of making significant acquisitions for the first time since it nearly went bankrupt three years ago. Numico, however, lost 3.1 percent to €35.99 on a downgrade to “in-line” by Goldman Sachs on the basis of its cautious outlook statement.

In the related brewing sector, Inbev was down 3.1 percent to €36.54 despite full year earnings reports which showed operating profits coming in slightly above predictions at €3.33 billion, with growth at 15.3 percent.

The utilities sector was still seeing bid rumours. Endsea, a bid target for Eon, was up 0.6 percent to €26.24. In new rumors, Gaz de France and Suez are said to be thinking of forming an alliance to repel a bid for Suez by Enel of Italy. Gaz de France gained 2.6 percent to €29.35 and Suez was up 4.1 percent to €33.32, while Enel dropped 0.7 percent to €7.12.

In the pharmaceuticals sector, Sanofi Aventis gained 0.5 percent to €72.45 despite announcing that the launch of its anti-obesity treatement in the United States could be put off until later in the year. The drug company’s full-year report showed that net profits were up by 25.7 percent to €6.34 billion, and it said that its earnings should grow by about 10 percent this year.