Gains in the oil and banking sectors helped European equities markets higher on Monday. The FTSE Eurofirst 300 added 0.4 percent to 1,318.95.

Carmaker Renault added 0.2 percent to €84.20 ahead of a board meeting set to discuss whether it will, along with Nissan, go into business with US automaker General Motors. At least one analyst said that such a partnership would make sense, but that it should be approached carefully considering the relatively weak position of GM at present.

The banking sector was mixed, but still helped out European markets as a whole. The National Bank of Greece dropped 4.1 percent to €29.62 on profit taking after a gain of almost 9 percent on Friday. Elsewhere, things were better. Banca Popolare Italiana added 6 percent to €7.77 after an Italian newspaper reported over the weekend that Societe Generale, Fortis, and Deutsche Bank had all approached Popolare with bids. Deutsche Bank gained 0.5 percent to €88.40, Societe Generale was up 0.9 percent to €116, and Fortis advanced by 1.6 percent to €27.10.

Among oil stocks, Cepsa gained 1.4 percent to €55.85, while Statoil added 1.7 percent to NKr179.50.

EADS dropped 0.8 percent to €22.28 after Rothschild valued the 20 percent of Airbus that BAE Systems owns at a lower figure than had been expected. BAE Systems also declined, by 3.3 percent. EADS also announced, over the weekend, that co-chief executive has resigned over the Airbus A380 delays and investigations into his financial dealings and that the head of Airbus, Gustav Humbert, was also stepping down.

Mixed economic data out of the United States and a hike in interest rates in the eurozone sent the FTSE Eurofirst 300 down by 0.1 percent on Friday and 0.2 percent lower on the week to close at 1,342.43 on Friday. The decline came after the index reached a four and a half year high on Monday, as the negative news overcame news of mergers and acquisitions activity and some positive corporate earnings reports.

Among the gainers during the week were Deutsche Telekom, which had a better than expected fourth-quarter report that sent shares up 1.9 percent during the week to €13.64. Oil field services company Saipem also had a good earnings report as well as a positive outlook statement for 2006, sending its shares up 15 percent on the week to €18.59.

Accor gained on the week on the news that it is thinking about selling its portion of the travel agency Carlson Wagonlit in order to concentrate on its hotel business, with shares up 3.5 percent to €51.45. Property company Metrovacesa was up 20.1 percent to €73 after its rival, Sacresa, made a bid for the company.

Belgian financial services provider Fortis dropped 4.4 percent during the week to €29.12 after it had to release its full-year headline results after a briefcase holding a draft of its report was stolen.

Utility Suez lost 7.9 percent on the week to €31.20 after analysts issued a negative assessment of the terms of its merger with Gaz de France, which lost 4.1 percent during the week to €70.25. Elsewhere in the utilities sector, Germany’s Eon was down 4.8 percent on the week to €90.23 after legislation made it less likely that its bid for Endsea of Spain would succeed.