The FTSE Eurofirst 300 dropped 0.5 percent on Monday to 1,349.51despite advances in the telecommunications sector spurred by last week’s gains by Telecom Italia. Oil stocks were lower due to declining oil prices.

Telecom Italia added over 4 percent last week when it became known that it is thinking about selling its wireless division. While trade was suspended on TI on Monday while its board met to consider reorganization, the rest of the sector saw gains. Telefonica was 0.9 percent higher to €13.18, while KPN added 1.4 percent to €9.86, Deutsche Telekom gained 3 percent to €11.57, and France Telecom advanced by 3.5 percent to €17.15. The European fixed-line sector was up 1.5 percent as a whole.

Roche dropped 4.6 percent to SFr215.20 after the US Food and Drug Administration asked for more information about the Avastin cancer treatment currently under review for the treatment of breast cancer. The drug is produced by Genentech, in which Roche owns a controlling interest.

In the oil sector, Neste Oil dropped 2.5 percent to €22.37 even though UBS issued an upgrade. OMV was 3.1 percent lower to €39.40, while Statoil fell 4.8 percent to NKr158.50.

Michelin added 1.6 percent to €52.75 on an upgrade from “neutral” to “buy” from UBS, which also raised the tire maker’s target share price from €46 to €60 on price declines in rubber that it believes is not just temporary.

The FTSE Eurofirst 300 was 0.4 percent higher to 1,357.94 on Thursday as much of the Italian banking sector saw gains on the day. The success of the sector also sent the S&P/MIB index in Italy up by 1.2 percent to 37,733.

The major exception to the gains in Italian banks was UniCredit, which was 0.4 percent lower to €6.207. Banca Intesa and Sanpaolo IMI were both higher on news that they are in talks toward a merger which, if completed, would create Italy’s second largest bank, behind UniCredit. Intesa was 7.6 percent higher to €5.025, while Sanpaolo added 6.1 percent to €15.558. Elsewhere in Italy, Mediobanca was up 5.1 percent to €17.064 and Capitalia advanced by 2.9 percent to €6.763.

Other gainers included Swatch, which added 4.3 percent to SFr47 on higher profits and sales. Credit Suisse issued positive comments on the Swiss watchmaker. In the telecommunications equipment sector, Ericsson added 0.9 percent to SKr22.90 on the announcement that it had secured a $1 billion contract with Indian telecom Bharti Airtel to upgrade and expand its network. EADS gained back part of its losses earlier in the week that were due to concerns over delays in two big development projects, adding 2.5 percent to €22.60.

The oil sector saw declines after gasoline inventories in the United States rose unexpectedly last week. Statoil dropped 0.9 percent to NKr176, while Neste Oil declined by 1 percent to €25.42.

Cement maker Holcim dropped 1.2 percent to SFr98 even though profits in the first half were up b y 44 percent. Holcim’s German rival Heidelberg Cement also dropped 1.2 percent, to €97.50, while Lafarge dropped 0.3 percent to €99.30. All were affected by the news out of the United States on Wednesday that house sales are down, raising concerns about construction markets around the world.

The FTSE Eurofirst 300 was 0.1 percent lower on Monday, to 1,356.39, reversing last week’s trend of gains. Among the sectors showing declines were semiconductors, and carmakers, all of which are strongly export-oriented.

Oil stocks gained on the session, however, as crude oil prices were back on their way up. Neste Oil was 1.6 percent higher to €25.71, while Norsk Hydro was up 3 percent to NKr173 and Statoil added 3.2 percent to NKr177.

Among semiconductors, Phillips dropped 0.8 percent to €26.22, while STMicroelectronics and Infineon each fell 1.5 percent, to €12.59 and €8.68 respectively. In related stocks, software group SAP was 1.2 percent lower to €145.38.

The automobile manufacturing sector was also lower on the session. Volkswagen dropped 0.6 percent to €63.44. Renault, BMW, and DaimlerChrysler each were 0.9 percent lower, with Renault at €89.90, BMW at €39.79, and DaimlerChrysler to 41.06. The decline for DaimlerChrysler came after a German court ordered it to pay more in a shareholder dispute going back to the merger between Dailmer and Chrysler in 1998. Porsche fell 14 percent to €787.50.

Elsewhere, utilities Suez and Gaz de France were lower on speculation that their merger might yet not be completed. Gaz de France was 0.7 percent lower to €28.60, while Suez dropped 0.8 percent to €32.68.

Bids news were in focus in Europe on Thursday, taking the FTSE Eurofirst 300 up by just 0.1 percent to 1,360.8. Technology stocks were higher once again, while oil saw declines as crude oil prices slipped further.

In the semiconductor sector, STMicroelectronics added 2.6 percent to €12.79 and ASML gained 3 percent to €16.68, while in the telecommunications equipment sector Ericsson was 2.2 percent higher to SKr23.50.

Among oil companies and related service providers, Total fell 0.8 percent to €53.20, while Saipem dropped 1.8 percent to €17.39. Neste Oil declined by 2.5 percent to €24.97, while Statoil was 2.6 percent lower to NKr170.

In the automobile manufacturing sector, Volvo was 5 percent higher to SKr401.50 amid rumors that a group of investors would enter a bid or force the carmaker to return cash to its shareholders. Both Renault, which owns 20 percent of Volvo, and German company Man denied involvement in the rumored moves and both added 2.7 percent on the session to €90.75 and €60.10 respectively.

Wienerberger bid 216p per share for UK rival Baggeridge Brick, sending the Austrian brick maker’s shares 0.8 percent higher to €37.40. Irish brick maker CRH, meanwhile gained 0.7 percent to €25.59.

In the insurance sector, Zurich Financial dropped 1.9 percent to SFr282.50 even though a new report showed that its net profits were up by 9 percent in the first half of the year. The decline came on the news that written premiums were down more than had been expected.

The FTSE Eurofirst 300 was up by 0.2 percent to 1,311.64 on Wednesday, led higher by the Italian banking sector, which was mixed but generally higher on the session.

Banca Intesa dropped 0.4 percent to €4.43 after early gains when its chairman said that continuing rumors that it would merge with Capitalia had no basis in fact. Capitalia, meanwhile, added 1 percent to €6.59 after going as high as €6.7650 earlier in the session, on its status as a possible takeover target. Other Italian banks thought to be possible bid targets include Banca Monte Paschi di Siena, which gained 1.1 percent to €4.63, and Banca Popolare Italiana, up 2.1 percent to €8.29. Analysts expect some consolidation in the sector at some point.

In the oil sector, Goldman Sachs issued upgrades for OMV and Norsk Hydro, sending share prices for both companies higher. Norsk Hydro was up 3.3 percent to NKr174 on an upgrade from “sell” to “neutral”, while OMV added 3.6 percent to €48.55 as its recommendation was raised from “neutral” to “buy”. In addition, UBS upgraded Norsk Hydro as well, from “neutral” to “buy”, and upped its target share price from NKr195 to NKr210.

On the negative side of the oil sector, Goldman Sachs reduced its recommendations for Neste Oil and Saipem, downgrading both companies from “neutral” to “sell”. The change in rating hurt Neste Oil, which dropped 0.3 percent to €2734, but Saipem still managed a gain of 1.2 percent to €18.20.

European equities markets saw only small gains over the week as investors worried about what will happen concerning interest rates. The FTSE Eurofirst 300 dropped 0.2 percent on Friday but managed a 0.2 percent gain on the week to close at 1,316.45.

Some sectors did see gains on the week. Air carriers were helped out by a report from EasyJet that it had seen 15.6 percent more passenger traffic in June and predicted good profits growth for the year. Air France-KLM added 0.7 percent during the week to €18.51, while Ryanair was up 8.6 percent to €7.71, also on increased passenger traffic in June. Ryanair reported a 23 percent increase in passenger traffic over the same period last year.

The oil sector was up as well as crude oil prices reached new record highs during the week. Neste Oil was up 0.8 percent on the week to €27.75, while Norsk Hydro added 5.5 percent to NKr174 and Statoil advanced by 6 percent to NKr187.

Aerospace and defense group EADS added 3.2 percent on Friday after its new co-chief executive said that the company’s first priority was to regain investors’ confidence, but it still was down 3.5 percent to €21.7 after Rothschild questioned the valuation of Airbus. EADS owns 80 percent of Airbus.

In Europe on Thursday, the FTSE Eurofirst 300 added 1 percent to 1,318.78 despite more comments from the president of the European Central Bank that point toward future hikes in interest rates in the region.

In the oil sector, stocks advanced even though crude oil prices stepped back from yesterday’s record highs. Neste Oil went as high as €27.90 during the day after Merrill Lynch raised the company’s target share price from €33 to €36. By the close, Neste had retreated to €27.57, still 3.3 percent higher. Meanwhile, Repsol YPF was up 1.9 percent to €22.56, while Statoil added 2.8 percent to NKr181 and OMV gained 3.6 percent to €48.70.

Automobile manufacturers saw some gains on the session. Peugeot was up 0.1 percent to €48.80 on the announcement that global sales were 0.6 percent higher in the first half of 2006. Renault added 2.8 percent to €83.55 even though its sales were weak in the first half of the year.

The airlines sector saw gains despite higher crude oil prices. Alitalia gained 1.1 percent to €0.91 after the an Italian government agency provisionally approved it’s purchase of rival Volare. Lufthansa was up 1.4 percent to €14.52, while Air France-KLM advanced by 1.5 percent to €18.51.

European equities markets were up on Wednesday even though investors seemed determined to put off much activity until after the US Federal Reserve announces its decision on US interest rates. Its announcement will come after European markets close on Thursday.

The FTSE Eurofirst 300 added 0.2 percent to close the session at 1,272.25.

Oil stocks were up again as the price of crude oil continued to rise. Total gained 0.5 percent to €49.48, while Neste Oil was up 1.1 percent. Royal Dutch Shell A-shares listed in Amsterdam advanced by 1.5 percent to €25.61.

The media sector saw gains after the takeover saga involving US company Warner Music and the UK’s EMI stepped into the spotlight. Telecom Italia Media, which runs two broadcast television stations, digital channels, and a news agency, added 8.5 percent to €0.3718 after rumors escalated that publisher De Agostini might make a bid. However, Telecom Italia, down 1 percent to €2.118, which holds 69 percent of TI Media, and De Agostini both denied that there was a deal in the works. Elsewhere in the sector, Mediaset added 0.9 percent to €8.93. French broadcaster TF1 added 2.2 percent to €24.78, while its rival M6 gained 1.5 percent to €23.70.

After a decline of 9 percent on Tuesday, Danish shipper AP Möller-Maersk added 2.6 percent to DKr44.100 even though HSBC lowered its recommendation from “overweight” to “neutral” and lowered its target share price from DKr60.155 to DKr47.72.

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.

Despite declines during the week, the FTSE Eurofirst 300 closed out the week up by 1.2 percent to 1,322.02 thanks to strong rallies in the last two sessions of the week.

The oil sector saw strong gains during the week. OMV added 10.7 percent to €47.05 after it abandoned a merger with electric utility Verbund. Neste Oil was up 8.7 percent to €25.78, Statoil gained 6.5 percent to NKr180, and Norsk Hydro advanced by 6.2 percent to NKr172.

Banks were mixed. Natexis Banques Populaire gained 9.2 percent to €206 as it progressed toward its merger with Ixis. Raiffeisen International, however, ended the week down by 0.5 percent to €67.40 despite the fact that it gained about 15 percent in the final half of the week.

Stock exchanges were lower on the week. Deutsche Borse lost 6.3 percent to €103.80 as it looked like it would not merge with Euronext after all. Euronext, which expressed a preference for a bid by the New York Stock Exchange, dropped 7.2 percent to €69.25.

The steel sector also saw declines during the week. Arcelor was down by 5.1 percent to €33.05 after its announcement of a takeover of Severstal in Russia was perceived as a way to defeat a hostile bid by Mittal Steel. Mittal dropped 1.6 percent on the week to €25.