The FTSE Eurofirst 300 was 0.4 percent higher on Wednesday to close at 1,320.81. Oil stocks helped the gains.

The semiconductor sector saw declines on the day. ASML dropped 0.8 percent to €14.92 and Infineon was down 2.4 percent. STMicroelectronics fell 3.1 percent to €11.63. While its second-quarter report reached expectations, forecasts for the third quarter were lower than investors wanted to hear. Dresdner Kleinwort reconfirmed its “reduce rating” and target share price of €11.50, saying it is looking for a slowing of demand across the sector.

Telecom Italia was down again, by 1.3 percent to €2.07, as investors worried after a second quarter report that disappointed.

In the automobile manufacturing sector, Peugeot fell 10.1 percent to €41 after dropping as low as €40.07 earlier in the session. It cited rising raw materials prices in issuing a downward-revised second-half outlook. Even so, WestLB reiterated its “buy” recommendation.

Gains in the oil sector included a gain of 1.6 percent to €52.55 for Total, while OMV added 3.7 percent to €48.75.

In the steel sector, Arcelor was up 8.6 percent to €43 on the news that Mittal Steel has accumulated 92 percent of Arcelor’s shares as it nears completion of its takeover.

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.

In Europe on Monday, the FTSE Eurofirst 300 added 0.4 percent to 1,321.04 as quarterly earnings reports began to be issued by European companies.

French property group Unibail added 1.7 percent to €135.10 ahead of its half-year earnings report, due later in the month. Merrill Lynch upgraded Unibail to “buy” based on the upward trend of office rents in Paris and issued a target share price of €150.

In the semiconductors sector, STMicroelectronics dropped 0.4 percent to €12.20 after a downgrade from “buy” to “neutral” and a decrease in its target share price from UBS. On the other hand, UBS reissued “buy” ratings for both ASML and Phillips Electronics. ASML added 0.5 percent to €15.44, while Phillips was up 1.1 percent to €23.96. Elsewhere, Infineon gained 1.7 percent to €8.98.

The oil sector saw declines as crude oil prices fell from record highs last week. OMV was down 1.8 percent to €47.71, while Statoil dropped 1.9 percent to NKr183.50.

In the pharmaceuticals sector, Roche added 0.6 percent to SFr207.20 after it said that it has filed with European regulators to gain approval for its drug Avastin for use against breast cancer. In addition, the way was cleared via a ruling from the International Trade Commission for Roche to apply for US approval for CERA, an experimental anemia drug.

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.

Continuing worries about interest rates around the world sent European equities markets lower on Tuesday. The FTSE Eurofirst 300 dropped 0.7 percent to 1,269.90.

The oil sector saw substantial gains, however, as crude oil prices began to rise again. Eni gained 2.1 percent to €22.53, while OMV added 3.7 percent to €44.40 and Statoil was up 4.8 percent to NKr175.

Utilities were down during the day. Suez was down 0.4 percent to €30.30 even though UBS raised its recommendation on the company from “neutral” to “buy”. Gaz de France, meanwhile, was 0.6 percent lower to €25.55. The French government has postponed the bill that would allow the merger between Suez and Gaz de France until September. Meanwhile Enel, the Italian utility, dropped by 1.1 percent to €6.575. Some analysts believe that Enel is considering a bid for Suez.

Shipper AP Möller-Maersk B shares were the biggest decliners of the day, falling 9.3 percent to DKr43,000 on a reduced profits forecast for 2006 on disappointing growth in its container shipping unit. German tourist and shipping group Tui dropped 3.6 percent to €14.96 despite maintaining its full-year predictions for its container division.

European tire manufacturers were down after Japanese tire maker Bridgestone cut its profits forecast for this year by 35 percent because the cost of raw materials has risen. Michelin declined by 2.6 percent to €45.82, while Continental fell 2.9 percent to €77.51.

The FTSE Eurofirst 300 ended the week with a gain of 1.7 percent, to 1,276.32, but over the week it dropped 2.8 percent. Miners, oil companies, and other sectors connected to resources were responsible for much of the declines on the week.

The pharmaceuticals sector was mixed. Irish drugmaker Elan lost almost 17 percent during the week to €12.38 after the US Food and Drug Administration allowed them to return their multiple sclerosis drug Tysabri to the shelves, but only as a treatment of last resort after its sales were stopped earlier due to the deaths of some patients taking the drug. With the reintroduction, Elan said that it would increase the price of the drug. Drug companies with rival MS treatments saw gains, however. Schering added 1 percent to €86.25, while Serono was up 3.8 percent to SFr802. Also gaining during the week was Roche, which was up 1.5 percent to SFr194.20 after it announced encouraging test results on three different cancer drugs.

Telecommunications companies were mixed as well. Telecom Italia gained 0.9 percent to €2.24, Belgacom added 1 percent to €25.90, and Telefonica advanced by 1.4 percent to €13. But France Telecom declined by 2.3 percent to €17.29 after it said it would sell its 54 percent share of directory publisher PagesJaunes, which was up 2.5 percent this week to €22.89.

In oil related sectors, Austrian oil prodcuer OMV dropped 15.6 percent during the week to €39.75. Atlas Copco, the Swedish engineering company that works with oil producers, added 4.4 percent to SKr165.50 on Friday, but still declined by 10 percent over the week.

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.

The FTSE Eurofirst 300 saw gains on Tuesday after Monday’s substantial losses, with a rise of 2.4 percent to 1,302.02. The gains came as investors looked for good buys and commodity prices turned upward again.

In the oil sector, including oil companies and companies that service oilfield operations, gains were substantial. Statoil led the way among oil companies, adding 9.8 percent to NKr180. Norsk Hydro gained 8.8 percent to NKr167.50. Neste Oil was up 7.7 percent to €24.35, while OMV advanced by 7.5 percent to €42.99.

Among companies that service the oil industry, toolmaker Atlas Copco was up 11.5 percent on the day to SKr203.50. Its peer Sandvik saw a gain of 8.1 percent to SKr439.50. Italian company Saipem matched Atlas Copco’s 11.5 percent gain to close at €17.782, while Dutch company SBM Offshore, which builds oil production and storage platforms, added 6.9 percent to €81.60.

Banks with exposure to the emerging markets of Eastern Europe, which saw substantial declines earlier, were up significantly on the day. Raiffeisen was up 10.8 percent to €65.40, while Eurobank gained 7.7 percent to €22.84 and Alpha Bank advanced by 2.3 percent to €20.06.

Stock exchange Euronext was up 3.6 percent to €70 after it accepted an offer from the New York Stock Exchange, rejecting the offer from Deutsche Borse. Euronext said that it believed the NYSE offer was in the best interest of shareholders and that regulatory approval for the merger with the NYSE would go more smoothly than an attempt to merge with Deutsche Borse. The news did not hurt Deutsche Borse, which added 1.4 percent to €102.76.