European markets were mixed Tuesday.

The FTSE Eurofirst 300 was 0.15 percent lower to 1,479.61.

While the Dax and the CAC-40 were higher, by 0.23 percent to 7,424.75 and by 0.36 percent to 5,418.78 respectively, Madrid’s IBEX fell 0.21 percent to 14,239.8.

Credit Agricole (Euronext: AGA) was 0.26 percent lower to €27.82, while Spain’s Banco Santander (IBEX-35: SAN; NYSE: STD; LSE: BNC) dropped 0.5 percent to €13.39, Deutsche Bank (FWB: DBK; NYSE: DB) fell 0.81 percent to €92.38, Banco Bilbao (IBEX-35: BBVA; NYSE: BBV) was down 1.1 percent to €16.80 and Dexia (Euronext: DEXB; Euronext: DX) dropped 1.76 percent to €19.59 for the worst performance of the day on the CAC-40.

Utilities were also lower.

EDF (Euronext: EEN) was down 0.66 percent to €70.40, while Eon (FWB: EOA; NYSE: EON; LSE: EON) fell 1.14 percent to €117.47. Power generator Alstom (Euronext: ALO) was 0.15 percent lower to €122.19.

The oil sector was down as oil prices fell as Hurricane Dean seemed to become less of a threat to Gulf of Mexico oil facilities.

Total (Euronext: FP; NYSE: TOT) dropped 0.4 percent to €52.47, while Repsol (IBEX-35: REP) was 0.8 percent lower to €26.03.

Car and truck makers were mixed.

While Volkswagen (FWB: VOW; OTC: VLKAY) added 2.09 percent to €150.74, Renault (Euronext: RNO) fell 0.64 percent to €94.29 and Man (FWB: EDF1) was down 0.89 percent to €94.17.

The best performance on the day on the Dax came from drug maker Bayer (FWB: BAY; NYSE: BAY; TYO: 4863), which added 3.82 percent to €56.72 on continuing rumors that Novartis (NYSE: NVS) is about to make an offer.

Air France had the best day on the CAC-40 with a gain of 3.66 percent to €28.30.

The retail sector saw gains in Paris.

Luxury goods retailer PPR (Euronext: PP), whose subsidiaries include Gucci, was 1.12 percent higher to €115.73, while Carrefour (Euronext: CA) added 1.65 percent to €48.79.

European equities markets were lower on Tuesday, with the FTSE Eurofirst 300 dropping 0.5 percent to 1,511.95.

The automobile manufacturing sector was lower, hurt by the possibility of interest rates going higher despite higher sales figures. Volkswagen dropped 0.2 percent to €84.38 even though sales of its Audi brand was reported to be selling well in China. Fiat was down 0.4 percent to €15 even though it said that higher sales had allowed it to achieve its full-year target on profits.

Oil companies were also lower as crude oil prices fell again. Norsk Hydro dropped. 1.2 percent to NKr186, while Repsol fell 1.8 percent to €24.95 and Statoil was 2.2 percent lower to NKr158.50. Meanwhile, energy companies were mixed on the session. Endsea was 1.6 percent higher to €37.35 after a court in Madrid lifted an injunction that was preventing Gas Natural from bidding for it. But Eon, which is also interested in Endsea, dropped 0.1 percent to €100.28, while Gas Natural was 0.8 percent lower to €29.60.

Brewers were higher on the session following broker upgrades. Inbev was 1.3 percent higher to €49.22 on a target share price upgrade from €53 to €60 from Sanford C Bernstein. Heineken added 2.8 percent to €38.87 when Morgan Stanley upped its recommendation from “equal weight” to “overweight”. Meanwhile, wine and spirits maker Pernod Ricard was up 2.2 percent to €146.40.

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 managed to notch an 0.2 percent gain on Tuesday to close at 1,487.30 despite losses in the oil sector.

While the continuing drop in crude oil prices hurt the oil companies, the falling prices helped airlines see gains. Air France-KLM was up 0.5 percent to €34.51, while Alitalia gained 1.5 percent to €1.08 and Iberia added 1.7 percent to €2.95. Amid rumors that Lufthansa could be interested in buying SAS, the Scandinavian carrier added 6.1 percent to SKr139 and Lufthansa gained 1.5 percent to €22.35. The talk of a possible deal has been circulating since Sweden’s newly elected government said in September that they might be interested in selling its stake in SAS.

The chemicals sector was also helped by falling oil prices. BASF was 0.6 percent higher to €73.42, while Akzo Nobel added 1.4 percent to €47.96.

Share prices dropped, however, in the oil sector. Total fell 1.2 percent to €34.51, while Repsol-YPF was 1.9 percent lower to €25.47, Statoil dropped 3.2 percent to NKr153 and Cepsa was down 3.9 percent to ¥54.80.

Elsewhere, Philips Electronics added 1.8 percent to €28.51 when it said it would begin an announced share buyback on 22 January, while France Telecom gained 2.7 percent to €22.25 on an upgrade from “neutral” to “buy” from UBS.

European equities markets were higher this week as earnings reports continued to be largely positive and mergers and acquisitions activities continue. The FTSE Eurofirst 300 was up a bit more than 1 percent during the week to 1,464.19. In France, the CAC-40 added 1.4 percent to 5,447.5, while in Germany the Xetra Dax gained 1.9 percent to 6,357.77.

In the banking sector, Sampo added nearly 11 percent over the week to €18.82 and Danske Bank added 1.5 percent to DKr252 after Sampo agreed to a takeover of its banking unit by Danske, which will pay DKr30.1 billion ($5.2 billion) in cash. Elsewhere in the sector, however, Natexis Banques Populaire dropped 6.1 percent to €209.

Sacyr Vallehermoso added 6 percent on Friday and 13.3 percent during the week to €46.80 on rumors that it has increased its stake in Spanish oil company Repsol to as high as 15.2 percent. The move, which has yet to be confirmed by Sacyr, would make the Spanish construction group Repsol’s largest shareholder. Repsol, meanwhile, was 4.3 percent higher this week to €27.80.

Ryanair added 5.1 percent over the week to €9.42 and rose as high as €9.66, a new record, at one point after it upgraded its full-year target for profits.

In Europe on Tuesday, the FTSE Eurofirst 300 added 0.4 percent to 1,4740.4, closing at its highest level since May 2001.

In the insurance sector, Munich Re dropped 2 percent to €128.50. Investors and analysts were not happy with its announced buyback plan, worth €1 billion, considering that the reinsurer has excess capital estimated to be in excess of €4 billion.

The European media sector saw declines on the session. Mediaset dropped 0.2 percent to €8.92 on a downgrade as it prepares to release its third-quarter report. Morgan Stanley reduced its rating on the Italian broadcaster from “overweight” to “equal-weight”. Vivendi fell 1.4 percent to €29.60 on the news that its sales in the third quarter were short of what had been anticipated. Growth of its music publishing division and in its French mobile unit was weak, as well.

Banks did well on the day. UBS added 1.1 percent to SFr76.55, while Credit Suisse gained 2 percent to SFr80.35. WestLB raised its target price on both banks, with UBS up from SFr82 to SFr86 and Credit Suisse up from SFr77 to SFr83. Deutsche Postbank was 4.6 percent higher to €61.90 on a third-quarter report that showed net profit up 16.7 percent, with interest income up almost 14 percent.

In the oil sector, Repsol was 2.6 percent higher to €27.76. JP Morgan reiterated its “underweight” rating on the Spanish company but raised its target share price from €21.50 to €23.50.

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.

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.