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 Monday, the FTSE Eurofirst 300 dropped 0.4 percent on the session to close at 1,525.97 after being unable to hold on to gains earlier in the day.

In the automobile manufacturing sector, DaimlerChrysler was 0.6 percent lower to €48.51 despite an upgrade of its target share price from €50 to €55 from JP Morgan.  The broker’s move was prompted by the belief that the carmaker could announce a plan to return Chrysler to profit when it announces results next month.

In the electronics sector, Philips Electronics fell 1.7 percent to €28.88 on mixed results in the fourth quarter.  According to the report, net profits were higher than had been anticipated on lower tax rates and one-time gains.  Sales, however, did not meet expectations.  Philips also raised its dividend for 2006.

Gains in oil prices led to losses in a couple of sectors.  Lufthansa dropped 3.2 percent in the airlines sector.  Meanwhile, in the chemicals sector, agrochemicals manufacturer Syngenta was down 2.8 percent to SFr233, while Rhodia fell 3.5 percent to €2.80.

Among producers of luxury goods, Swatch added 2 percent to SFr287.50 on the announcement that its sales were up by 12.3 percent in 2006.  Broker comments were positive, with Lehman Brothers and Credit Suisse reiterating recommendations of “overweight” and “outperform” respectively.  Credit Suisse said its target share price on the watchmaker, currently SFr300, was under review, while Lehman Brothers upped its target share price for the company from SFr270 to SFr315.

In the banking sector, Raiffeisen International added 3.7 percent to €113.64 on raised target share prices from Merrill Lynch and Morgan Stanley as optimism continued in relation to the bank’s business interests in Russia and in eastern Europe.  Merrill Lynch upped Raiffeisen’s targets share price to €140, while Morgan Stanley set raised its target for the bank to €83.80, citing the possibility that investors might be putting too much emphasis on its Russian exposure.

Banks were lower in Europe on Wednesday, sending the FTSE Eurofirst 300 down 0.7 percent to 1,477.47. It was the Eurofirst’s lowest close in two weeks.

The energy sector was mixed after the Supreme Court in Spain lifted an injunction that had barred bids for Endsea from Eon and Gas Natural, leaving only one remaining legal hurdle before bids can be offered. Endsea was 2.6 percent higher to €36.37, but Eon dropped 0.2 percent to €96.59 and Gas Natural was 2.1 percent lower to €29.24.

In the banking sector, Erste Bank fell 3.4 percent to €57.55 after Credit Suisse issued a short-term “sell” recommendation on the stock on concerns of immediate concerns about earnings momentum. However, Credit Suisse maintained its overall “neutral” recommendation on the bank. Meanwhile, Raiffeisen International dropped 3.7 percent to €107.46.

There were gains in the semiconductors sector. Infineon added 0.2 percent to €10.96 on an upgraded targets share price from Deutsche Bank based on a better outlook from its wireless unit. STMicroelectronics gained 0.8 percent to €14.65 after an upgrade from “underweight” to “overweight” from Lehman Brothers, which also upped the chipmaker’s target share price.

Among mobile phone manufacturers, Nokia dropped 2.2 percent to €14.63 on a lowered target share price, from €16.50 to €16.30, from Deutsche Bank. Ericsson, on the other hand, received an upgrade from “hold” to “buy” from Deutsche Bank, which also upped its target share price from SKr27.509 to SKr32.50. Still, Ericsson ended the session steady at SKr28.25.

The FTSE Eurofirst 300 closed Friday at its highest level in five and a half years, adding 0.6 percent on the session and 2.8 percent higher on the week at 1,489.09. The Eurofirst has gone up 16.7 percent since the beginning of the year.

Banks were big gainers during the week. Nordea added 6.3 percent to SKr106.2 when Sampo of Finalnd was reported to have added to its stake in Swedish bank. Sampo gained 4.2 percent during the week to €20.38. ING was 6.8 percent higher to €33.68 and ABN Amro was up 7 percent to €24.30 on rumors that the two are in talks over a bid from ING.

Meanwhile, Raiffeisen International added 9.1 percent over the week on investor enthusiasm about its presence in central and eastern European markets. Citigroup began coverage of the Austrian bank with a “buy” recommendation, citing the potential value of Raiffeisen’s holdings in Russia and the Ukraine.

The retail sector saw gains, as well. Inditex, owner of the Zara fashion chain, gained 8 percent to €41.70 on the week on better than expected results in the third quarter. Ahold was 9.7 percent higher to €8.25 on rumors of a coming bid from private equity group KKR and on positive comments from UBS.

European equities markets were higher on Wednesday as the banking sector was mixed but mostly higher. The FTSE Eurofirst 300 closed at 1,471.57, a gain of 0.6 percent and just below a five-year high. In Germany, meanwhile, the Xetra Dax ended the session at 6,520.77, its highest closing level since February 2001.

French publisher Lagardere added 2.5 percent to €59.10 on an upgrade from “neutral” to “buy” from UBS, which said it sees the possibility of growth by the publisher. Elsewhere in France, utility EDF added 4.8 percent to €55.55, a record high share price, on hopes that tariffs will go up soon. EDF’s shares have risen more than 15 percent since the end of November. On the other hand, French airplane engine manufacturer Safran dropped 6 percent to €15.95 after announcing that it was investigating accounting problems in its defense security unit and dropping its full-year operating profit margin target to 4 percent.

Raiffeisen International was 6.1 percent higher to €107.13 on growth potential in central and eastern Europe, where the Austrian bank has extensive holdings. In addition, Citigroup began coverage of Raiffeisen with a “buy” rating and a target share price of €124. Among other Austrian banks, Erste Bank added 0.5 percent to €57.63. Erste also has exposure to eastern Europe.

Elsewhere in the sector, ABN Amro was 3 percent higher to €24.10 on the news that it has completed its purchase of Italian bank Antonveneta. There were also rumors that ING is interested in bidding for ABN, its larger Dutch rival. ING gained 2.2 percent to €33.16.

The FTSE Eurofirst 300 ended the day and the week higher on Friday, closing at 1,449.14. The Eurofirst added 0.1 percent on the session and 2 percent higher for the week.

In the pharmaceuticals sector, bids news sent both Schwarz Pharma of German and UCB of Belgium higher when the Schwarz family accepted a €4.4 billion offer, including both cash and shares, for the company in which they hold a 59.2 percent stake. Schwarz added 4.7 percent during the week to €95.99, while UCB was 9.2 percent highr to €52.25.

Bids news also brought gains to the tobacco sector after UK company Gallaher said it had received an offer which many think came from Japan Tobacco. Despite a decline on Friday after a downgrade from Cazenove, Gallaher was 24.2 percent higher over the week to £11.72. With investors hoping for more consolidation in the sector, French-Spanish tobacco group Altadis ended the week with a gain of 8.8 percent to €40.5.

Banks also had a good week. Irish banks were led higher by Anglo Irish Bank after it said that its pre-tax profits were better than had been expected and after UBS upped its target share price. Anglo Irish added 8.4 percent to €15.44, while Allied Irish Banks added 3.8 percent over the week to €21.49 even after it didn’t raise its growth guidance. Bank of Ireland, meanwhile, was 3.7 percent higher to €16.65.

Austrian banks also did well. Erste Bank added 4.2 percent to €57.78 after ING initiated coverage with a “buy” recommendation. Raiffeisen International was 6.8 percent higher to €99.90. Both banks do substantial business in eastern Europe.

Mixed news on the US economy the FTSE Eurofirst 300 lower on Thursday as concerns about that issue outweighed mergers and acquisitions activity in banking. The Eurofirst was 0.2 percent lower to 1,467.27.

Banks were in focus on the session as the sector was mixed on bids and earnings news. Financial services group Sampo added 7.8 percent to €19.08 on the news that it will sell its banking unit, Sampo Bank, to Danske Bank of Denmark for DKr30.1 billion in cash. Danske Bank dropped 4 percent to SKr252 on analyst opinion that it is spending too much to buy Sampo Bank.

Allied Irish Banks were 0.3 percent higher to €21.87 on a report that its Polish division, Zachodni WBK, saw a gain of 29 percent in profits in the third quarter as more people in Poland took out mortgages. Greek bank Piraeus added 1 percent to €23 on upgrades from JP Morgan and Investment Bank of Greece. Investment Bank raised its recommendation of Piraeus from “accumulate” to “buy”, while JP Morgan upped its target share price from €26 to €28, citing its performance in the third quarter. On the other hand, Raiffeisen International dropped 3.2 percent to €86.60 despite a tripling of net profits in the quarter. The decline was due to losses on loans in Russia and Ukraine.

Elsewhere, Belgian brewer Inbev added 2 percent to €46.03 on a third-quarter report of net profits that were 25 percent higher due to growth in eastern Europe and Latin America. The third-quarter figures were higher than had been anticipated.

In the energy sector, Spanish power generator Iberdrola dropped 1.8 percent to €35.46 on the announcement that is thinking of bidding for Scottish Power in the UK.

Declines in the oil and automobile manufacturing sectors sent the FTSE Eurofirst 300 0.3 percent lower on Monday to 1,445.8. Carmakers were lower on profit taking, while oil stocks dropped on falling crude oil prices.

In the automobile manufacturing sector, BMW dropped 1.2 percent to €44.64 and Fiat declined 1.3 percent to €13.68. Peugeot was 1.5 percent lower to €44.33 after it cut full-year estimates after reports showed sales down in the first nine months of the year. Volkswagen fell 1.7 percent to €77.40 on mixed reviews from brokers. West LB reduced its recommendation from “hold” to “reduce”, but Goldman Sachs, UBS, and Deutsche Bank all raised VW’s target share price.

Declining oil prices sent Spanish company Cepsa down 1.3 percent to €60.90. Statoil was 2.2 percent lower to NKr165.25 even though it exceeded expectations in its third quarter report on previously high prices for crude. Neste Oil dropped 2.3 percent to €24.81, while Norsk Hydro’s lower than anticipated report on third-quarter profit sent its shares 2.8 percent lower to NKr148.75.

Elsewhere, banks were also lower on the session. Erste Bank of Austria did better than the rest of the sector, losing only 0.2 percent to €53.80 on a report of net profits up by 16 percent in the third quarter, which was just lower than had been expected. Trading income was down by 22 percent. ABN Amro also dropped 0.2 percent, to €22.95, after it said its net profit dropped by 5.6 percent in the quarter. Raiffeisen International dropped 0.7 percent to €89.60.

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.