The FTSE Eurofirst 300 dropped 5.1 percent during the week and was down 1.4 percent on the year when it closed at 1,463.3 on Friday.

Banks were lower, with those exposed Turkey and Eastern European markets doing the worst. EFG Eurobank (ASE: EFG) dropped 8.4 percent to €27.20 after it agreed this week to purchase 70 percent of Tefkenbank of Turkey. Raiffeisen International (WBAG: RIBH) fell 9.2 percent to €102.25; the Austrian bank owns assets in Central and Eastern Europe. National Bank of Greece (LSE: NBGA; NYSE: NBG), owner of Finansbank of Turkey, was 9.5 percent lower to €38, while Alpha Bank (OTC: ALBKY) fell 12.5 percent to €21.88 even though it reported that profits were up by 24.6 percent in 2006.

Software maker SAP (FWB: SAP; NYSE: SAP) added 1.4 percent during the week to €35.34 after bids rumors and a reiterated “buy” rating from Deutsche Bank (NYSE: DB).

In the automobile manufacturing sector, Volkswagen (OTC: VLKAY) and Porsche (FWB: POR3) were both lower, even though VW reported good results from its Audi division. VW dropped 1.8 percent on the week to €93.22, while Porsche fell 6.7 percent to €968.21.

Moller Maersk, the Danish shipper which has exposure to Russia and China, saw its B shares drop 7.2 percent lower this week to DKr58,200.

In Europe on Tuesday the FTSE Eurofirst 300 dropped 0.3 percent to 1,544.99. The real estate and oil sectors were lower, while carmakers saw gains.

Porsche (Xetra: POR3; FWB: POR3) added 2.7 percent to €1,058.31, while Volkswagen (OTC: VLKAY) gained 8 percent to €94.94 on a full-year report that showed operating profit up 52 percent in 2006.

Brewers were mixed after Carlsberg (OMX: CARL A, CARL B) said that higher capital expenditures would limit 2007 profit growth. Even though its full-year report fulfilled expectations, the Danish brewer dropped 6.7 percent to DKr583. Heineken (Euronext: HEIA) was also lower, by 2.3 percent to €39.36, ahead of its report that is due Wednesday.

Elsewhere in the sector, InBev (Euronext: INB; NYSE: ABV) gained 0.5 percent to €53.07 as rumors of a merger with Anheuser-Busch (NYSE: BUD) continue to circulate. Grolsch (Euronext: GROL) added 3.3 percent to €32.94 after it reported that full-year profits exceeded expectations and announced an extra dividend.

The oil sector declined on lower prices for crude oil. Total (Euronext: FP; NYSE: TOT) dropped 1.5 percent to €52.78, while Statoil (OSE: STL; NYSE: STO) fell 1.6 percent to NKr156.

In the real estate sector, Unibail (PAR: UL) was 1.3 percent lower to €235.80 on a downgrade from “buy” to “hold” from Deutsche Bank. Also hurting the sector as a whole was news out of the UK that rising interest rates there are hurting the market.

The FTSE Eurofirst 300, higher early in the session, ended 0.3 percent lower to 1,522.87. The Eurofirst was hurt late by a slow start to the New York trading day.

The semiconductors sector saw gains in the day. Infineon added 2.4 percent to €11, while STMicroelectronics gained 2.5 percent to €14.38. STM was helped by positive comments from brokers that took the focus off the chipmaker’s disappointing quarterly results, announced on Wednesday. WestLB said that the new figures should be looked at in a wider context and hiked STM’s target share price from €16 to €18.

Nokia added 5 percent to €16.26 after reporting record mobile phone sales in the fourth quarter and amid mixed broker sentiment. While Merrill Lynch is advising its customers to buy the cell phone maker, Dresdner Kleinwort is recommending that its clients sell the stock.

Automobile manufacturers declined on new of losses by Ford Motor. BMW fell 1.4 percent to €45.99. DaimlerChrysler and Porsche were each 2.3 percent lower, to €48.64 and €1,010 respectively, with Credit Suisse lowering Porsche’s rating from “outperform” to “neutral” and suggesting that investors take profits. Peugot was down 3.3 percent to €52.

Airlines also saw losses. Iberia fell 1 percent to €3.01, while Air France-KLM dropped 3.9 percent to €32 and Lufthansa was 5.6 percent lower to €20.76 after it said that passenger yields would not grow significantly this year.

The FTSE Eurofirst 300 ended the day at a five-year high as it closed 0.6 percent higher to 1,480.76. The gains came as analysts at Standard & Poor’s said that the active year in mergers and acquisitions could be topped by next year’s activity.

The airlines sector saw gains as investors looked for more consolidation in the sector after the recent record amount paid for the takeover of Qantas of Australia. Iberia was up 1.1 percent to €2.81, while Lufthansa added 1.3 percent to €20.87 and SAS gained 1.4 percent to SKr108.00.

In the pharmaceuticals sector, Novo Nordisk added 2.5 percent to DKr468 on an upgrade from “hold” to “buy” from Citigroup. The broker also raised Novo’s target share price from DKr445 to DKr525, citing the positioning of the drug maker and healthcare group to capture more business as more and more people become diabetic. It also said that Novo’s growth potential from its anti-obesity drug had not yet been priced into to its share value.

Also in the healthcare sector, Nestle and Novartis both benefited from Nestle’s agreement to purchase Novartis’ medical nutrition unit for $2.5 billion. The deal was said to position Nestle second only to Numico in providing special foods for patients. Nestle added 1.5 percent on the news, to SFr436, while Novartis gained 1.8 percent to SFr71.35 and Numico was up 2.9 percent to €40.13.

In the automobile manufacturing sector, Porsche was 2 percent higher to €955.00 when HVB increased its target share price from €995 to €1,104. Meanwhile, Volkswagen was 0.2 percent lower to €84.00.

In Europe on Tuesday, the FTSE Eurofirst 300 came back from early losses but still ended the session 0.3 percent lower to 1,425.35. The 300 was down 0.6 percent at one point on the session.

The pharmaceuticals sector was lower. Roche dropped 1.5 percent to SFr215.50 even though Bear Stears made positive comments, reaffirming its “outperform” rating and target share price of SFr280 for the Swiss drug maker. Meanwhile, Akzo Nobel was 1.7 percent lower to €41.86 after announcing that US drug company Pfizer had dropped out of a development deal with the Dutch group.

Utilities were lower as well. Finnish utility Fortum dropped 1.4 percent to €22.44 after it abandoned plans to raise electricity rates for its domestic non-commercial customers. Iberdrola issued an expected bid for Scottish Power but the offer was lower than expected, sending its shares 2.1 percent lower to €32.06. German utility RWE, up recently on bids rumors, fell 2.6 percent to €83.80.

The automobile manufacturing sector was mixed as the euro hit its highest level in almost two years in relation to the US dollar. Volkswagen and Porsche were both higher, with Porsche adding 0.3 percent to €854.55 and VW gaining 2.5 percent to €82 on rumors that Porsche was building more of a stake in VW. On the other hand, BMW and Renault each dropped 0.3 percent, to €41.72 and €91.25 respectively, while DaimlerChrysler was 0.7 percent lower to €43.96.

The FTSE Eurofirst 300 was higher on Monday, ending the session 0.3 percent higher to 1,466.91.

The car and truck making sector did not have as good a day. Porsche and Volkswagen were both lower on indications that Porsche does not intend to attempt a complete takeover of VW, as had been rumored last week. VW dropped 0.1 percent to €80.71, while Porsche was 1.3 percent lower to €889. French carmakers Renault and Peugeot each fell 0.8 percent on the session, to €95.40 and €48.46 respectively. DaimlerChrysler bucked the trend in the sector and added 0.2 percent to €47.26 on upgrades from HVB and Deutsche Bank.

In the insurance sector, reinsures were up. Hannover Re added 0.2 percent to €33.08 and Munich Re gained 1.1 percent to €125.67. Swiss Re was 3.1 percent higher to SFr106.3 on the lowest number of claims made in ten years and healthy premium payments which generated high reserves.

Among stock exchanges, Deutsche Borse gained 2.5 percent to €126.00 on consolidation hopes after Nasdaq offered for the London Stock Exchange.

Aerospace and defense company Thales dropped 1.2 percent to €37.22 even though UBS upped its target share price from €35 to €39 but left its recommendation at “neutral”.

Credit Suisse added 0.2 percent to SFr80.80 even though UBS downgraded the investment bank from “add” to “hold”. Meanwhile, Greek banks were lower on the session due to their exposure to the Turkish banking sector. The declines came after the European Union turned up the pressure on Turkey to resolve its differences with Cyprus ahead of an entrance of Turkey into the EU. National Bank of Greece dropped 1 percent to €36.60, while Alpha Bank was 1.5 percent lower to €23.70 and EFG Eurobank fell 1.8 percent to €28.20.

With an automobile manufacturing sector that fared well early in the week but saw declines later and crude oil prices that fell dramatically at the end of the week, the FTSE Eurofirst 300 was down 0.1 percent over the week to 1,462.05.

The oil sector was down on both the day Friday and over the week as a whole. The worst performers were Statoil, which fell 4.8 percent on Friday and 3.3 percent during the week to NKr167.75 and Norsk Hydro, with declines of 5 percent on the day and 3.8 percent on the week to NKr152.

Car and truck makers were mixed on the week. Volkswagen was up and Porsche declined on rumors that Porsche is getting ready to bid for VW. Porsche, which already owns 27.4 percent of VW, said it wants to increase its holding to 29.9 percent; if it acquires 30 percent, it will be forced to submit a bid. VW added 3.9 percent to €83.09 during the week, while Porsche was 1.6 percent lower to €900.

VW, with large stakes in both MAN and Scania, is also a major player in the efforts of German truck maker MAN to acquire Swedish rival Scania. VW favors the merger while Investor, Scania’s other major shareholder, and Scania’s unionized workers, are against the merger. With rumors circulating this week that Scania is preparing a counter bid, MAN added 2.9 percent over the week to €73, while Scania’s B shares were 2.6 percent lower to SKr475. Investor ended the week at SKr155.50.

The semiconductors sector was higher on the week on strong quarterly reports and ahead of the release of a new iteration of Microsoft’s Windows. STMicroelectronics was up 3.5 percent to €14.11, while Infineon added 5.2 percent to €9.78 and ASML gained 6.5 percent to €19.30.

The FTSE Eurofirst 300 ended the session Thursday 0.2 percent higher to 1,473.84, its highest close in five and a half years, buoyed by gains in the automobile manufacturing sector.

Stock exchanges were mixed on the session, with Euronext 1.1 percent higher to €85.95 on a third quarter report that was about as expected, while Deutsche Borse fell 0.7 percent to €124.06 after dropping plans to merge with Euronext.

In the semiconductors sector, Infineon dropped 2.3 percent to €9.57 after warning of lower sales and earnings in the current quarter, after its fourth quarter operating profits were lower than had been hoped after a key customer went bankrupt.

In the cars and trucks sector, MAN reasserted its hostile bid for Scania, despite repeated rejections. Volkswagen, the largest shareholder in both companies, will hold a board meeting later in the day to consider the offer. There were also rumors that Scania would submit a counter bid for MAN. Porsche, meanwhile, was said to be thinking of bidding for Volkswagen after having already said it would increase its holding in VW.

Everyone involved in this M&A dance benefited, with the exception of Scania, whose B shares dropped 2 percent to SKr465.50. Volkswagen added 1.5 percent to €85.50, while MAN gained 3.6 percent to €73.64 and Porsche was 4.7 percent higher to €921. There were also gains elsewhere in the sector, as Renault was up 0.9 percent to €97.85, DaimlerChrysler added 1.9 percent to €48.41, and Peugeot gained 3.4 percent to €49.77.

The FTSE Eurofirst 300 saw gains on Wednesday on advances in the automobile manufacturing sector. The Eurofirst added 0.3 percent to close the session at 1,454.74.

DaimlerChrysler led the way among carmakers with a gain of 4.2 percent to €43.23 on better than anticipated profits in the third quarter. While profits were down by almost 37 percent from the same quarter last year, the carmaker did report a net profit against an expectation of losses in the period. This report, plus a better than expected report from US car manufacturer General Motors, helped send Porsche 2.4 percent higher to €925.10, while Fiat and Renault each added 2.6 percent, to €14.08 and €93.25 respectively. Fiat reported huge growth in earnings in the quarter.

In an associated sector, tire makers were mixed on the session. Continental was 0.4 percent lower to €92.10 after Goldman Sachs issued negative comments. On the other hand, Michelin added 2.8 percent to €63.10 on a report showing that sales were up 4.9 percent in the quarter, about what had been expected. Michelin also announced price hikes and a plan for cutting costs. Credit Suisse reiterated its “under perform” recommendation, but UBS was more positive about the French tire manufacturer.

The semiconductors sector was lower, with STMicroelectronics down 1 percent to €13.17 even though its profits were up by 133 percent in the third quarter. Some analysts, however, expect that STM will not perform as well as the rest of the sector as 2007 begins. Infineon, meanwhile, dropped 1.8 percent to €9.54.

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.