In Europe on Tuesday, the FTSE Eurofirst 300 ended slightly lower, down 0.1 percent to 1,449.5

Banks were mixed on the session, with Erste Bank 1.6 percent higher to €54.15 on an upgrade to “buy” from Merrill Lynch, while Raiffeisen added 2.4 percent to €89 and Allied Irish Banks gained 2.8 percent to €21.25. Swedish banks, however, were lower on the session. SEB dropped 1 percent to SKr206, Swedbank was 1.7 percent lower to SKr225.50, and Handelsbanken fell 4.5 percent to SKr192 on third quarter results that saw both operating profits and gross income failing to meet predictions.

Oil companies were mixed as well. Statoil was 1.1 percent higher to NKr167.75 on the announcement that its Snorre oilfield, closed due to a safety problem concerning lifeboats, is being brought back online. Neste Oil added 4.5 percent to €24.35 after declines on Monday on a downgrade from Morgan Stanley. Norsk Hydro, however, dropped 0.5 percent to NKr150.75 after it said that operating profits were up 18 percent in the third quarter, less than had been anticipated.

In the construction sector, Spanish builder Metrovacesa dropped 8.1 percent to €115.70 on remarks from the government stock market regulator that its listing on the Ibex index should be examined.

Alcatel, the French telecommunications equipment maker, added 7.2 percent to €10.29. While net profits were down 42 percent in the quarter, mostly due to one-time gains during the third quarter last year, profits for US telecom Lucent, which Alcatel is purchasing, posted results that were better than had been predicted.

The FTSE Eurofirst 300 added 0.4 percent to 1,450.5 on Monday’s session as financial sectors saw gains that helped balance out losses in the oil sector.

The banking sector was helped by expectations of good earnings reports as well as by continuing bids rumors. Italian bank UniCredit was 0.8 percent higher to €6.62 and Hypovereinsbank added 1.9 percent to €36.63 on the news that Polish legislators voted on Friday to approve a merger between the two banks. Elsewhere in the sector, Raiffeisen International gained 1.1 percent to €86.95 and Danske Bank was 2 percent higher to DKr246 ahead of next week’s quarterly report. Natexis Banques Populaire gained 3.2 percent to €225.20 on speculation about an upcoming merger.

Airlines did well as oil prices continued to decline. Ryanair was 1.3 percent higher to €8.82, while Air France-KLM gained 2.1 percent to €26.35 and Lufthansa added 2.4 percent to €17.31. The sector was also helped by a 2.9 percent gain in the UK by British Airways on an upgrade from Citigroup.

Dropping oil prices did now, however, give any comfort to the oil sector. Repsol and Royal Dutch Shell each dropped 0.8 percent, to €25.83 and €27.03 respectively. Italian refiner Saras was 1.9 percent lower to €4.06 on a lower target share price from Morgan Stanley, which handed out target downgrades to other companies in the sector as well.

OMV fell 2 percent to €41.25, while Statoil was 2.6 percent lower to NKr166 even though Banc of America upgraded the Norwegian company. In the Greek portion of the sector, Hellenic Petroleum dropped 2.6 percent to €9.84, again on a Morgan Stanley downgrade. Morgan Stanley also reduced Neste Oil’s recommendation, from “overweight” to “equal weight”, sending the Finnish refiner 3 percent lower to €23.30. Norsk Hydro saw the biggest loss in the sector, dropping 4.1 percent to NKr151.50.

With the European oil sector declining again on Tuesday due to sharp drops in crude oil prices, the FTSE Eurofirst 300 was 0.2 percent lower to 1,392.86.

In the oil sector, Total was down 1.4 percent to €50.85 and Repsol YPF dropped 1.8 percent to €23.30. Statoil fell 2.8 percent to NKr149, while Norsk Hydro declined 3.1 percent to NKr 139.25 and Neste Oil was 5.1 percent lower to €21.99.

The automobile manufacturing sector saw declines on broker downgrades. Peugeot fell 0.7 percent to €43.72 and went as low as €42.79 earlier in the session after UBS dropped the carmaker’s rating from “neutral” to “reduce” and cut its target share price from €40 to €38. Meanwhile, Renault was 3.5 percent lower to €88.60 on a downgrade from “outperform” to “neutral” by Credit Suisse, which cited a drop in sales in the third quarter.

The MAN/Scania story took another direction amid rumors that Scania and Volkswagen are thinking of jointly bidding for MAN. MAN said it has not received an offer and none of the other players - Scania and its largest shareholders, Volkswagen and Investor - were willing to comment. Investor B shares dropped 1.3 percent to SKr152, but Scania B shares added 0.6 percent to SKr439, Bolkswagen gained 1.5 percent to €67.98 and MAN was 5.7 percent higher to €74.

Despite gains in several sectors due to continuing mergers and acquisitions news and rumors, the FTSE Eurofirst 300 dropped 0.1 percent to 1,370.04 on Monday as crude oil prices continued to decline.

Speculation that Spanish construction company OHL was discussing a possible merger with French peer Eiffage sent Eiffage 3.6 percent higher to €78.25. OHL added 4 percent to €15.75. Meanwhile, Sacyr Vallehermoso gained 1 percent to €32.05 on rumors that Sacyr is thinking of adding to its current 33.3 percent holding in Eiffage.

In the pharmaceuticals sector, UCB of Belgium said it would purchase Schwarz Pharma of Germany, a move that Credit Suisse said made sense. The news sent UCB 0.1 percent lower to €47, but Schwarz was 17.7 percent higher to €89.07. Others in the sector were benefited by the news, including Novo Nordisk, which gained 1.3 percent to DKr432.

There was also bids talk in the airlines sector as Lufthansa was said to be looking to buy, although it said that remarks by its CEO had been misinterpreted. Lufthansa dropped 0.4 percent to €16.14. Despite the denials SAS, which was said to be one of the rivals Lufthansa was interested in, was 2.1 percent higher to SKr97. Ryanair added 3.7 percent to €8.45. The gains were helped as well by the falling oil prices.

Declines in the oil sector were substantial. Neste Oil fell 3.8 percent to €21.16, while Norsk Hydro dropped 4.5 percent to NKr138.75 and Statoil declined 5 percent to KNr147.25.

The FTSE Eurofirst 300 was 0.4 percent higher on Thursday, to 1,386.58 as mergers and acquisitions activity, both agreed to and rumored, again was in the spotlight.

The news that Merck will buy a 64.5 percent stake in Serono mobilized the pharmaceuticals sector. Merck, which will spend SFr16.6 billion in the deal, dropped 4.7 percent on the session to €74.65. Serono, however, added 17.6 percent to SFr1,076 on the announcement of the deal. Elsewhere in the sector, Altana gained 1.2 percent to €45.17 after it said it will sell its pharmaceuticals business to Danish company Nycomed. In addition, Sanofi-Aventis was 1.4 percent higher to €69.65.

Bids rumors led to gains in the Swiss specialty chemical sector. On the strength of a rumor that Dow Chemical is thinking of bidding, Ciba gained 2.9 percent to SFr73.60, while Clariant added 3.7 percent to SFr16.90 amid speculation of interest from private equity.

EADS was 2.4 percent lower to €22.26 after it announced yet another delay in delivery of the A380 superjumbo jet. Not all the news for EADS was bad, however, as Lufthansa said it has put in an order for 30 Airbus A320s, a smaller aircraft, and has the option to order an additional 30 planes.

The Norwegian oil sector was lower on recent declines in crude oil prices. Statoil dropped 3.2 percent to NKr155, while Norsk Hydro fell 4 percent to NKr145.

Banks were mixed on Monday in Europe as mergers and acquisition talk carried over from last week. Meanwhile, gains in technology stocks helped lead the FTSE Eurofirst 300 up by 0.4 percent to 1,364.89. Oil companies were down as crude oil prices fell again.

European oil companies were lower after crude oil prices fell on a reduced chance that there would be any damage to oil interests in the Gulf of Mexico from the current storm in the region. Norsk Hydro was 0.9 percent lower to NKr167, while Statoil dropped 1.1 percent to NKr174.

In the semiconductors sector, STMicroelectronics added 1.4 percent to €12.70. Infineon gained 2 percent to €9.03.

Banca Intesa and Sanpaolo IMI were down slightly after last week’s gains on the strength of a proposed merger as shareholders began to have doubts about the deal worked out by the boards of the two banks in a Saturday meeting. Sanpaolo was 1.4 percent lower to €15.87, while Intesa dropped 1.6 percent to €4.99.

Spanish bank Santander, which owns 8.4 percent of Sanpaolo, added 0.7 percent to €12.08. Meanwhile, it was said that Credit Agricole, which owns almost 18 percent of Intesa, was trying to set terms for the deal, especially surrounding the issue of branches to be sold after any merger. Agricole added 1 percent to €32.75.

Elsewhere in the banking sector, Deutsche Postbank was 3.1 percent higher to €62.01 after it was said that Deutsche Post was ready to sell its 50.1 percent holding. On speculation that Deutsche Bank might be interesting in buying, Deutsche Bank added 0.4 percent to €89.02. Deutsche Post gained 2.5 percent to €19.57 on the speculation.

Greek banks, however, were down on the day after a terrorist attack at a Turkish coastal resort. A number of Greek banks have holdings in Turkish banks. EFG Eurobank, which owns EFG Istanbul Securities, and Alpha Bank each dropped 1.2 percent to €23.98 and €20.86 respectively. National Bank of Greece, which finalized its purchase of Finansbank of Turkey just last week, declined by 1.8 percent to €30.50.

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.

In Europe on Tuesday the FTSE Eurofirst 300 was up a slight 0.1 percent to 1,315.53 after having gone as high as 1,321.01 during the day. Even though the day’s advance was so small, Citigroup issued an over-all positive statement on European equities markets, saying that it expects a slowdown but not a recession, and that while the growth of profits might slow, growth will remain strong.

The European oil sector saw gains on the day. OMV gained 3.2 percent to €47.45 and Statoil was up 4.2 percent to NKr186. Meanwhile, Norsk Hydro added 6.1 percent to NKr173 on a second quarter report that showed operating profits up by 30 percent. Still, Merrill Lynch repeated its “neutral” rating on Norsk due to a weak showing by its aluminium division.

Auto parts manufacturers were mixed on the day. Faurecia was down 0.4 percent to €41.23 after a large decline on Monday. French parts maker Valeo, however, was up 8.6 percent to €27.49 on a profit margin that was up to 4.1 percent in the second quarter, from 2.2 percent in the first quarter. Both manufacturers warned that raw materials prices would have more of an effect in the second half of the year.

Still related to the automobile sector, tire makers Michelin and Continental was advances, as each gained 2.8 percent to €45.19 and €75.72 percent respectively.

Losers on the day included Telecom Italia, which said operating profits were down in the first half. The report resulted in a 2.7 percent fall to €2.098. Also seeing declines was paper products maker SCA, which fell 4.8 percent to SKr301 on lower than expected pre-tax profits in the second quarter.

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.