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.

In Europe on Monday the FTSE Eurofirst 300 added 0.3 percent to 1,517.07 on Monday despite declines in the telecommunications sector.

Telecoms were lower after Deutsche Telekom issued its second profits warning in six months, citing competition and currency issues. Citigroup lowered its recommendation on the German telecom from “hold” to “sell” and Deutsche Telekon dropped 4 percent to €13.60. Elsewhere in the sector, France Telecom fell 0.9 percent to €21.18, while Telecom Italia and Swisscom were each 1.5 percent lower, to €2.27 and SFr471.50 respectively.

Car and truck manufacturers was gains on the session. On rumors that it could be a target for Volvo, MAN added 2.6 percent to €78.86. Volvo was 1 percent higher on the talk, to SKr502, while Scania, the recent target of MAN’s failed hostile bid, was up 3.5 percent to SKr485. Fiat gained 2.8 percent to €16.67 on a target share price hike from JP Morgan.

The airline sector was up on merger hopes and on upgrades from UBS, which raised its recommendation on Lufthansa and Iberia from “neutral” to “buy” and hiked target share prices for both Ryanair and Air France-KLM. Lufthansa was up 1.1 percent to €21.38, Ryanair gained 1.3 percent to €11.04, Air France was 1.5 percent higher to €32.67, and Iberia gained 3.3 percent to €3.10. Meanwhile, Alitalia added 1.9 percent to €1.10.

European equities markets were lower on Tuesday, with the FTSE Eurofirst 300 dropping 0.5 percent to 1,511.95.

The automobile manufacturing sector was lower, hurt by the possibility of interest rates going higher despite higher sales figures. Volkswagen dropped 0.2 percent to €84.38 even though sales of its Audi brand was reported to be selling well in China. Fiat was down 0.4 percent to €15 even though it said that higher sales had allowed it to achieve its full-year target on profits.

Oil companies were also lower as crude oil prices fell again. Norsk Hydro dropped. 1.2 percent to NKr186, while Repsol fell 1.8 percent to €24.95 and Statoil was 2.2 percent lower to NKr158.50. Meanwhile, energy companies were mixed on the session. Endsea was 1.6 percent higher to €37.35 after a court in Madrid lifted an injunction that was preventing Gas Natural from bidding for it. But Eon, which is also interested in Endsea, dropped 0.1 percent to €100.28, while Gas Natural was 0.8 percent lower to €29.60.

Brewers were higher on the session following broker upgrades. Inbev was 1.3 percent higher to €49.22 on a target share price upgrade from €53 to €60 from Sanford C Bernstein. Heineken added 2.8 percent to €38.87 when Morgan Stanley upped its recommendation from “equal weight” to “overweight”. Meanwhile, wine and spirits maker Pernod Ricard was up 2.2 percent to €146.40.

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.

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.

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.

The FTSE Eurofirst 300 was up 0.2 percent over the week to 1,448.46 for its fifth week in a row of positive movement.

The automobile manufacturing sector was up on pleasing quarterly reports. Fiat added 0.3 percent over the week to €13.86, while Renault gained 1.3 percent to €90.90 and DaimlerChrysler was 4.5 percent higher to €43.27.

In a related sector, tire makers saw mixed results. While Michelin added 4 percent over the week to €64 on a quarterly report that was about where analysts expected it to be, Continental dropped 5 percent to €87.49 on negative comments from both Goldman Sachs and Deutsche Bank.

The pharmaceuticals sector was lower. Sanofi-Aventis was 2.2 percent lower for the week to €68.65 and Novo Nordisk declined 4 percent to DKr455. The sector was hurt by the announcement from AstraZeneca in the UK that trials of a new drug to treat stroke patients had not been successful.

On the other hand, the telecommunications sector saw gains during the week on quarterly results and bids rumors. The biggest winner was Telenor, which added 13.2 percent this week to NKr103 after its quarterly results brought positive comments and target share price increases from a number of brokers. France Telecom also did very well, gaining 8.8 percent to €20.56 as its third-quarter report earned it target share price increases from UBS and Citigroup.

There were gains elsewhere in the sector, with OTE of Greece being the exception. OTE dropped 0.2 percent to €19.80 on rumors that Telekom Austria could be looking to buy a share of the Greek telecom. Telekom Austria added 0.1 percent to €20.01. Telefonica gained 5.5 percent to €15.06 and Deutsche Telekom was 6 percent higher to €13.52.

The FTSE Eurofirst 300 saw gains on Wednesday on advances in the automobile manufacturing sector. The Eurofirst added 0.3 percent to close the session at 1,454.74.

DaimlerChrysler led the way among carmakers with a gain of 4.2 percent to €43.23 on better than anticipated profits in the third quarter. While profits were down by almost 37 percent from the same quarter last year, the carmaker did report a net profit against an expectation of losses in the period. This report, plus a better than expected report from US car manufacturer General Motors, helped send Porsche 2.4 percent higher to €925.10, while Fiat and Renault each added 2.6 percent, to €14.08 and €93.25 respectively. Fiat reported huge growth in earnings in the quarter.

In an associated sector, tire makers were mixed on the session. Continental was 0.4 percent lower to €92.10 after Goldman Sachs issued negative comments. On the other hand, Michelin added 2.8 percent to €63.10 on a report showing that sales were up 4.9 percent in the quarter, about what had been expected. Michelin also announced price hikes and a plan for cutting costs. Credit Suisse reiterated its “under perform” recommendation, but UBS was more positive about the French tire manufacturer.

The semiconductors sector was lower, with STMicroelectronics down 1 percent to €13.17 even though its profits were up by 133 percent in the third quarter. Some analysts, however, expect that STM will not perform as well as the rest of the sector as 2007 begins. Infineon, meanwhile, dropped 1.8 percent to €9.54.

After seeing losses on Tuesday, the FTSE Eurofirst 100 added 0.9 percent on Wednesday to 1,441.48 on several bits of positive news.

Automobile manufacturer Fiat was 5.7 percent higher to €13.53 on rumors that it wants to sell its truck making division. It didn’t hurt that JPMorgan issued positive comments, saying that Fiat stands to double operating profits in the third quarter.

French jet engine manufacturer Safran also gained 5.7 percent, to €16.87, on rumors that there is a merger in the works between it and defense electronics company Thales. Thales added 1.7 percent to €36.58 on the speculation.

The forestry and paper sector saw gains when M-Real of Finland announced a major restructuring, saying that it will cut costs and cut capacity. It also announced the appointment of a new chief executive. M-Real added 14.9 on the news to €4.78. Among others in the sector, UPM Kymmene was 3.8 percent higher to €19.50, while Stora Enso advanced 5.3 percent to €12.61.

ASML, which makes semiconductor manufacturing equipment, dropped 6.6 percent to €17.75 as not all analysts were enthusiastic about its third-quarter report. ABN Amro dropped its recommendation from “hold” to “sell”, while Dresdner Kleinwort reaffirmed its “sell” recommendation. Both cited slowing orders as the cause for their disappointment. Deutsche Bank, however, reiterated its “buy” rating on ASML.

Dutch pharmaceuticals group Akzo Nobel also saw declines, falling 8.9 percent to €43.35 after it said it would delay the release of asenapine, it’s new anti-schizophrenia drug and released third-quarter results that were not up to analyst predictions.

News and rumors involving bids activity lifted the FTSE Eurofirst 300 by 1.9 percent on Monday to 1,314.30, almost 7 percent higher than its low for the year, reached in June.

The forestry and paper sector was helped by Oji Paper’s move to acquire Hokuetsu Paper Mills, as investors looked for signs of similar consolidation within the sector in Europe. UPM Kymmene gained 1.7 percent to €17.60, while Stora Enso added 2.2 percent to €11.73 and SCA was up 3.4 percent to SKr316.

In the telecommunications sector, France Telecom added 2.1 percent to €16.75 on the announcement that it would sell its stake, totaling 54 percent, in directories publisher PagesJaunes to a US private equity house. Shares in PagesJaunes gained 0.1 percent to €22.06.

Phillips Electronics was up 6.6 percent to €25.15 amid speculation that three separate private equity groups would bind for its semiconductors unit. ABN Amro repeated its “buy” rating on Phillips as well as reconfirming its target share price of €28.40.

Rumors of a merger between Italian utilities ASM Brescia and AEM Milano resulted in gains of 3.4 percent to €2.99 and 1.7 percent to €1.93 respectively. The chairmen of both companies confirmed that they were ready to engage in talks.

In the automobile manufacturing sector, Peugeot overcame early losses to end the day up 0.1 percent to €45.30 even though Faurecia, the parts maker in which Peugeot owns a 71 percent, said it saw operating margins go down in the first half. Faurecia fell 7.6 percent to €41.39. Fiat added 1.1 percent to €10.71 on the news that it would enter into a consumer financing venture with Credit Agricole.