European equities markets saw significant advances on Thursday. The FTSE Eurofirst 300 added 1 percent to close at 1,530.13, a six-year high.

Insurer Axa added 2.6 percent to €33.18 on a full-year report that showed sales 10 percent higher. The results brought an upgraded target share price, up from €34.50 to €36.10 from UBS, which also repeated its “buy” rating.

Elsewhere among financials, banks were higher after Deutsche Bank said that it made a record profit of €6 billion in 2006 due to growth in income from investment banking and trading. While Deutsche Bank ended the day even at €108.45, UBS was up 1.2 percent to €78.70 and Societe Generale gained 1.4 percent to €137.40. Anglo Irish Bank was 3.2 percent higher to €16 placement of 35.71 million shares in order to raise funds for expansion.

The oil sector gained on Royal Dutch Shell’s report that it had underlying profits of 2.6 percent in the fourth quarter, better than had been anticipated. Shell added 2 percent to €26.50, while OMV gained 1.3 percent to €41.62 and Total was 1.6 percent higher to €52.65.

The pharmaceuticals sector was higher on news from UK company AstraZeneca that it will emphasize joint ventures and cut jobs to promote growth. Novartis added 1.1 percent to SFr72.30 on an upgrade from JP Morgan, which raised the drug maker’s recommendation from “neutral” to “overweight” and upped its target share price from SFr74 to SFr81. Santhera Pharmaceuticals added 23.6 percent to SFr119.90 on an upgrade of its target share price from SFr123 to SFr175 from Deutsche Bank. Santhera expects an early approval of its treatment for a neuromuscular disease from the US Food and Drug Administration.

In slow trading due to the Martin Luther King Jr. holiday in the United States, the FTSE Eurofirst 300 nonetheless gained 0.6 percent on the session to close at 1,520.04.

The oil sector was higher even though crude oil prices remained low. OMV added 0.5 percent to €39.38 despite a UBS target share price downgrade from €45 to €43. Repsol gained 0.7 percent to €25.40, while Neste Oil was 2.5 percent higher to €23.07. Even bigger gains were achieved by Norsk Hydro and Statoil, proposed merger partners. Norsk was up 3.2 percent to NKr188.25, while Statoil added 4 percent to NKr162.

In the aerospace sector, EADS gained 2.7 percent to €25.75 on the news that its Eurocopter unit had won a contract to build 37 helicopters for the French police. Engine makers for airplanes, however, were mixed. MTU Aero Engines added 3.2 percent to €37.16 as Deutsche Bank reiterated its “buy” recommendation on the German manufacturer. However, Deutsche Bank reduced its recommendation for French engine maker Safran from “hold” to “sell” on earnings issues. Safran dropped 1 percent, to €17.20.

Merck added 1.8 percent to €89.04 on a raised price target and reconfirmed “overweight” rating from Lehman Brothers. The German pharmaceuticals company, which offered last week for the 16 percent of Serono that it does not yet hold, added 1.8 percent to €89.04.

In Europe on Friday, the FTSE Eurofirst 300 added 0.4 percent on the session and 1.6 percent on the week to close at 1,510.44. It was a new six-year high for the index.

Despite the gains, there were big losses for some. Software group SAP dropped 7.7 percent on the session to €39. The decline was blamed on new data showing that license sales were down. The report moved Goldman Sachs to take SAP off its “conviction buy” list and to reduce its target share price from €49 to €39. The decline, the largest for the software developer in over four years, led to a 4.5 percent decline over the week despite gains earlier in the week.

The oil sector was lower on the week after crude oil prices fell by more than 7 percent. Total was down 1 percent to €52.20, while OMV dropped 1.8 percent to €39.30 and Repsol YPF fell 3.1 percent to €25.22.

Another of the week’s losers was Carrefour. The French retailer dropped 5.5 percent on the session to €44.20 on broker downgrades after reports that sales were lower than had been anticipated in the fourth quarter. JP Morgan reduced its recommendation from “neutral” to “underweight” and Commerzbank lowered its rating from “buy” to “hold”. Both brokers also reduced Carrefour’s target share price.

Gainers included Deutsche Borse which added 7.7 percent to €148.75 during the week after it revelaed positive news from its Clearstream unit and as rumors circulated that it could merge with a US exchange operator.

The FTSE Eurofirst 300 was 0.6 percent lower on Tuesday to 1,477.94 as the oil and steel sectors declined on lower prices for commodities.

In the steel sector, ThyssenKrupp dropped 1 percent to €33.27 even though UBS hiked its target share price when the broker left its recommendation at “neutral”. Salzgitter was also lower, falling 3.8 percent to €96.59 after Credit Suisse reduced its recommendation from “outperform” to “neutral”.

Oil companies were also on the losing end for the session. After a gain of 20 percent on Monday, Norsk Hydro dropped 0.7 percent to NKr187.25. The decline came after Dresdner Kleinwort said that the Monday gains, coming after the announcement of a merger between Norsk Hydro and Statoil, were out of proportion. The broker cut its recommendation on Norsk Hydro to “sell”. Statoil was down 3.1 percent on the session, to NKr164.75, even though JP Morgan said that the merger makes sense for the oil company.

Elsewhere in the oil sector, declines came after Monday’s drop in crude oil prices. Total was 0.9 percent lower to €54.50 as OMV dropped 1.2 percent to €43.33.

In the telecommunications sector, Swisscom added 1.1 percent to SFr457.25 after it said that it will buy back a 25 percent share of Swisscom Mobile from UK company Vodafone. The news spurred Citigroup to hike Swisscom’s target share price from SFr430 to SFr452.50. Meanwhile, hopes of continued privatization sent Hellenic Telecom 1.9 percent higher to €23.72.

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.

The FTSE Eurofirst 300 reached yet another in its continuing series of closing highs on Monday, adding 0.2 percent to 1,443.50.

The oil sector was instrumental in the gains as Repsol YPF added 4.6 percent to €27.35 on rumors that Spanish builder Sacyr Vallehermoso is looking to acquire 3 percent of the company. Sacyr added 1.7 percent to €41.22 on the talk even though Deutsche Bank issued a downgrade from “hold” to “sell”. Other oil companies were also higher, with OMV up 1.4 percent to €42.29 and Statoil 3.6 percent higher to NKr166.75.

The Italian banking sector was mixed as Banca Popolare Italiana and Banca Popolare di Verona e Novara agreed to a merger deal worth €8.2 billion, which will create the third-largest retail bank in Italy. BPI added 3.6 percent on the news, to €10.76, but Verona was 7.5 percent lower to €21.09.

In the ongoing saga of the proposed MAN/Scania merger, meanwhile, MAN was down 2.6 percent and Investor - Scania’s second-largest shareolder - was flat at SKr159.50, while Volkswagen added 0.1 percent to €70.30 and Scania B shares were 0.9 percent higher to SKr485.50. Over the weekend VW again signaled support for the deal.

European supermarkets saw losses on the session. Delhaize was 0.9 percent lower to €63.50 and Ahold dropped 1.7 percent to €8.13 on reports that the two had abandoned merger talks, but neither company would comment on the speculation.

Philips Electronics declined 1.1 percent to €27.61 due to third quarter core profits that were not up to expected levels. West LB reiterated its “buy” recommendation, saying that it believes that shares in Philips are undervalued.

The FTSE Eurofirst 300 was 1.4 percent higher on Tuesday to 1,389.25, its highest close in over four months. Mergers and acquisitions again furnished most of the action, joined by gains in the oil sector after crude oil prices rose a bit overnight.

The proposed Scania/MAN merger again made news as Volkswagen, the largest shareholder in Scania, came out against the deal. VW’s chief executive criticized the proposed deal and suggested an alternative one which would involve not only MAN and Scania, but VW’s Brazilian truck business as well. When all was said and done, Scania and Investor, it’s second largest shareholder were lower on the session, but both VW and MAN saw gains.

Investor dropped 1.3 percent to SKr152.50, while Scania’s A shares were 6.2 percent lower and the Swedish truck maker’s B shares declined 7.8 percent to SKr432 and SKr421.50 respectively. Volkswagen added 1 percent to €66.65, while MAN was 1.4 percent higher to €62.55.

In the utilities sector, meanwhile, Acciona purchased 10 percent of Endsea on Monday and said that it might make a further purchase. This move put the Endsea/Eon merger in question, which has been in the works since the beginning of the year, when Eon bid €27 billion in cash for Endsea. Also affecting the merger was a ruling from the European Commission which held that Spain had violated EU in certain conditions it put on Eon’s acquisition of Endsea.

While Eon said that the ruling strengthened its determination to pursue the deal, the German utility’s shares dropped 2 percent to €94.09. Acciona added 5.1 percent to €117.35, while Endsea gained 10.5 percent to €32.50. Elsewhere, Gas Natural was up 5.6 percent to €28.66 as it repeated its own hope to buy Endsea.

In the oil sector, OMV was 1.7 percent higher to €37.89, while Statoil added 3.6 percent to NKr152.50.

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.

Rumors of mergers in Europe’s aerospace and defense sector sent European equities higher on Tuesday even though the oil sector declined as crude oil prices continued to drop. The FTSE Eurofirst 300 ended the session at 1,367.4. 0.2 percent lower.

Defense electronics company Thales and airplane engine manufacturer Safran were both said to be interested in bidding for French aeronautical supply company Zodiac. While Zodiac denied the rumors, all three companies saw gains on the session. Thales added 2.8 percent to €33.67, while Safran gained 4.5 percent to €16.79 and Zodiac was 6.8 percent higher to €47.69. In addition Alcatel, owner of 10 percent of Thales, was up 1.2 percent to €9.61.

Among oil companies, Cepsa dropped 2.1 percent to €55.50, Statoil declined by 3.2 percent to NKr168.50 and OMV was 3.7 percent lower to €41.25.

The semiconductors sector was helped by a prediction from Japanese company Elpida Memory that its sales could double this year. Infineon was 1.6 percent higher to €9.17 and ASML added 1.9 percent to €16.78. A reconfirmation of Merrill Lynch’s “buy” recommendation sent STMicroelectronics up 2.1 percent to €12.96.

In the transport sector, Danish container shipper Moller-Maersk added 3.1 percent to DKr46,900 as it said that its net profits in the first half dropped less than they had been expected to decline.

Drugmaker Bayer was down 0.7 percent to €39.26 even though its second quarter core earlings were up 14.1 percent, more than had been forecast. Elsewhere in the pharmaceuticals sector, Roche added 0.5 percent to SFr226.80 and Novartis was 0.6 percent higher to SFr70.50, both helped by the approval in Switzerland of Lucentis, a blindness treatment.

In Europe on Monday, the FTSE Eurofirst 300 added 0.9 percent to 1,343.55 as oil prices declined and a ceasefire between Israel and Hizbollah went into effect. Also helping the advance was good performance in the insurance sector.

Despite falling prices, the oil sector saw gains after BP said that it could keep half of its Prudhoe Bay field in Alaska in production despite the necessity to replace corroded pipelines. Total was 0.7 percent higher to €53.05, while OMV added 1.1 percent to €45.40.

Airlines were mixed after the security level in Britain was lowered and some restrictions on carry-on luggage were lifted after last week’s terrorist warnings and arrests. Air France-KLM was up by 1.8 percent to €19.60, while Lufthansa gained 2 percent to €14.52. On the other hand, Ryanair dropped 1.2 percent to €7.150 on its complaints that BAA was not doing enough to get delayed flights off the ground.

The insurance sector as a whole was helped by a Citigroup upgrade from “neutral” to “positive”. Both Citigroup and Deutsche Bank named Allianz, Axa, and Zurich Financial as their favorites in the sector. On the comments, Allianz was 1.2 percent higher to €130.09, while Zurich Financial gained 1.5 percent to SFr282.00 and Axa advanced by 1.6 percent to €28.55. Reinsurers Munich Re and Swiss Re were also helped by the comments, adding 1.4 percent to €115.65 and 2 percent to SFr93.00 respectively.

An upgraded by Deutsche Bank from “hold” to “buy” helped steel maker ThyssenKrupp 2 percent higher to €26.61.