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.

In Europe on Friday, the FTSE Eurofirst 300 added 0.3 percent, but over the week the index was slightly lower to 1,447.9. The weekly decline came on a mixed banking sector.

Commerzbank added 4.3 percent on Friday to €29.01 and added 3.8 percent on the week after issuing a third quarter report showed net profits that were higher than had been expected. Credit Suisse was higher on the week as well, adding 1.4 percent to SFr77.50 on third quarter figures that were generally good despite a decline in revenue from equities trading.

On the other hand, Deutsche Bank dropped 1.5 percent during the week to €97.09. Even though it also said equities trading had been down, earnings met expectations overall. UBS reported net profits down more than had been anticipated, again on declines in equities trading. The Swiss bank was 5.3 percent lower on the week to SFr74.70.

Spanish construction group Ferrovial added 9.1 percent to €74.05 after it reported underlying profit up 86 percent in the first nine months of the year, at least partly on its purchase of British airports operator BAA earlier in the year. Still in Spain, property group Metrovacesa was 8 percent higher this week to €121 on a tripling of its profit in the first nine months of the year.

In Europe on Tuesday, the FTSE Eurofirst 300 dropped 0.6 percent to 1,444.16 as banks saw losses.

UBS dropped 5.1 percent to SFr74.30 after it said it saw net profits drop by 21 percent in the third quarter. It still insisted, however, that sentiment has improved and it will fulfill expectations for full-year profits. Credit Suisse was also lower, falling 1.3 percent to SFr75.

Also down on its quarterly report was Sanofi-Aventis. The pharmaceuticals company dropped 2.8 percent to €66.60 on the news that profits fell 11.6 in the third quarter, about as much as had been expected.

Things were better in the automobile manufacturing sector. DaimlerChrysler added 3.1 percent to €44.70 after a German publication reported that a spin-off of the Chrysler unit was not being ruled out by the carmaker, a rumor that not all analysts were buying. Elsewhere in the sector, Fiat was 1.1 percent higher to €13.84 and Renault gained 1.2 percent to €91.65.

European insurers were also higher after a positive third-quarter report sent Friends Provident up 6.7 percent in the UK. Generali added 1.4 percent to €31.09, while CNP Assurances was up 1.7 percent to €82.45.

In the construction sector, Spanish builder Ferrovial was 5.1 percent higher to €72.40 on the announcement that its toll roads unit had acquired a road in Chile.