In Europe on Tuesday, the FTSE Eurofirst 300 added 0.98 percent to 1,460.47. Other European exchanges saw similar gains, with the Xetra Dax in Frankfurt gaining 0.92 percent to 6,595 and the CAC 40 up 0.97 percent to 5,437.13 in Paris.

The pharmaceutical sector was higher after Novartis (NYSE: NVS) gained approval from the US Food and Drug Administration for Tektura, a new blood pressure treatment that could generate as much as $1 billion per year in sales by 2010. Novartis added 4.9 percent to SFr70.10. Helped by this success and by analyst comment that pharma shares are too cheap, Merck (NYSE: MRK) gained 0.8 percent to €92.70 and Roche (SWX: ROG; OTC: RHHBY) was 0.9 percent higher to SFr216.

Peugeot’s (Euronext: UG; OTC: PEUGY) chief executive said at the opening of the Geneva car show that his company is not interested in purchasing DaimlerChrysler’s (FWB: DCX; NYSE: DCX; TYO: 7663) US Chrysler division. With no rivals voicing interest, analysts believe that any offers for the troubled carmaker will likely come from private equity and, indeed, rumors have a couple of private entities interested. Peugeot added 0.7 percent to €49.43, while DaimlerChrysler was 3 percent higher to €52. Meanwhile, Fiat (NYSE: FIA) gained 0.6 percent to €17.67 after Goldman Sachs repeated its “conviction buy” on the carmaker and raised its target share price from €17 to €22.

The energy sector saw gains in Europe on Wednesday as the FTSE Eurofirst 300 added 0.2 percent on the day’s session, to 1,546.70. Mergers and acquisitions rumors and news drove the gains.

Endsea and Eon were both higher after Endsea said Tuesday that Eon’s bid, worth €41 billion, was “adequate” and recommended it to shareholders, who will meet to vote on the bid in late March. Endsea added 0.4 percent to €38, while Eon was 0.7 percent higher to €111.46. Eon’s domestic rival RWE added 1.2 percent to €84.22 after it said it will not enter a gas and electricity price war with Eon.

Rumors circulated that France’s Electricite de France was going to bid for Iberdrola. While EdF denied the rumors, EdF and Iberdrola each gained 2.9 percent, to €56.60 and €34.97 respectively. Elsewhere in the sector, Gas Natural added 1.8 percent to €32.92 and Union Fenosa was 4.1 percent higher to €41.63.

In the semiconductors sector, Infineon added 10.7 percent to €11.96 after it said it had concluded a deal with Finnish mobile phone maker Nokia to supply chips for its low-cost phones.

Swiss drug maker Roche dropped 2.1 percent to SFr233.50 even though it reported that profits were up 36 percent for the full year. Investors did not seem impressed with the report, which was in line with expectations, nor with the outlook for 2007, which said that Roche expects lower sales during the year for Tamiflu, its flu drug.

The automobile manufacturing sector saw declines on the session. Peugeot fell 0.5 percent to €51.90 on a lower operating margin last year. The decline was not as much as feared, however. BMW was 2.4 percent lower to €45.43 after German insurer Allianz said that it will sell 16.1 million shares in the luxury carmaker.

The FTSE Eurofirst 300 was up significantly on Thursday, adding 1.8 percent to close the session at 1,503.93.

Banks were higher on bids rumors and broker comments. After Dresdner Kleinwort implied that there was a possibility of merger activity in the Spanish banking sector, Santander and BBVA were both higher. Santander added 1.3 percent to €14.30, while BBVA gained 1.7 percent to €18.73. Swedbank as 5.2 percent higher to SKr262.50 when UBS repeated its “buy” recommendation and upped its target share price from SKr265 to SKr300.

Stock exchanges also did well on the session. Euronext added 3.8 percent to €98.50 on approval of its plans to merge with the New York Stock Exchange. Meanwhile, Deutsche Borse gained 6.3 percent to €150.20 on talk that it could also merge with an exchange operator in the US. The Chicago Mercantile Exchange has been mentioned as a possible merger partner.

Roche was 2 percent higher to SFr230.70 on higher profits in the fourth quarter by Genentech, in which the Swiss pharmaceutical company is majority stockholder. Genentech’s fourth quarter profits were up 75 percent on demand for its cancer drugs and higher sales of a new treatment for blindness in older patients.

In the aerospace sector, EADS added 0.8 percent to €25.26 even though UBS reduced its recommendation from “neutral” to “sell” and warned that shareholders earnings could be diluted by a possible equity issue by the company.

The FTSE Eurofirst 300 was 2 percent lower over the week, closing at 1,421.17 on Friday as a strong euro hurt several sectors. One analysis said that corporate profits could be down by up to 4.4 percent next year if the euro continues to strengthen. New data showing that the US economy is slowing down also hurt European equities.

In the automobile and transport equipment sector, most stocks dropped. The exception was MAN, which added 1.1 percent to €70.71 as rumors circulated that Scania could counter bid for the German truck maker while rejecting its overtures. Scania was 0.4 percent lower to SKr473. Elsewhere among carmakers, BMW fell 3.8 percent over the week to €41.20, DaimlerChrysler dropped 4.7 percent to ¥43.41, and Renault was 5.1 percent lower to €88.35.

The pharmaceuticals sector was lower as well. Bayer only dropped 0.4 percent to €38.83, but Roche fell 3.8 percent to SFr212.3 during the week.

Cell phone maker Nokia was 6.8 percent lower over the week to €14.91 on a reduced outlook on profits and negative comments from Dresdner Kleinwort, which said that Nokia’s net income could decline as much as 20 percent in 2007. On the other hand, positive comments from Morgan Stanley helped airline Lufthansa add 1.4 percent over the week to €19.49.

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 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.

European equity markets saw ups and downs during the week, thanks to the unrest in the Middle East and the continuing string of quarterly reports being issued in various sectors. The FTSE Eurofirst ended the week 1 percent higher than it began, closing on Friday at 1,290.17.

Technology stocks were mixed during the week. Among in the semiconductors sector, Infineon ended the week 0.7 percent lower to €8.32. The German chip manufacturer had been up for most of the week, but ended the week on a low note as it issued a less than pleasing quarterly report. On the other hand, ASML and STMicroelectronics each were 1 percent higher on the week, to €14.76 and €11.77 respectively.

Mobile phone equipment makers Nokia and Ericsson both ended the week higher. Nokia added 4.5 percent to €15.28 despite a disappointing quarterly report, while Ericsson gained 7 percent to SKr22.80 after it was able to win a big contract.

In the electronics sector, Phillips Electronics issued a positive quarterly report early in the week. The good news managed to carry it to an advance of 6.3 percent for the week.

Among pharmaceuticals makers, Roche was up 4 percent during the week to SFr214.80 on good news and broker updates. Bear Stearns increased the drugmaker’s estimate of earnings, while Deutsche Bank upped its target share price from SFr245 to SFr250.

The FTSE Eurofirst 300 was 0.2 percent higher on Thursday, gaining only 2.3 points on the session to 1,301.6. Quarterly reports and broker recommendations were key factors in the gains and losses of individuals stocks.

Nokia added 0.4 percent to €15.62 after it released its second-quarter earnings report. Before the figures were released, shares in the Finnish mobile handset manufacturer went as high as €16.08. Later on, they fell as low as €15 before rising a bit before the close of trade. Meanwhile, Ericsson was down 0.9 percent to SKr23 ahead of its quarterly report, which is due to be released on Friday.

In the semiconductor sector, chip equipment maker ASML was 2.2 percent lower to €15.56 after a gain of over 6 percent yesterday after it released a positive quarterly report. Despite the report, Rabo Securities downgraded ASML’s shares from “buy” to “hold”.

Swedish engineering company Sandvik dropped 4.2 percent to SKr73.75 after its quarterly report failed to meet expectations. Elsewhere in the sector, Atlas Copco was down 2.5 percent to SKr176.50 after a disappointing guidance was released earlier this week.

In the pharmaceuticals sector, Roche added 3.3 percent to SFr214.90, its highest closing price ever, helped by a good quarterly report. Bear Stearns confirmed its “outperform” rating and SFr280 target share price for the drug maker. Dresdner Kleinwort did not change its “sell” rating, but raised Roche’s target share price from SFr170 to SF4180.

Weakness in the technology sector send the FTSE Eurofirst 300 0.9 percent lower on Tuesday, to close at 1,309.06. There were serious investor concerns as fears surfaced that quarterly reports could be disappointing.

French engineering group Alstom reported first-quarter sales figures that did not satisfy, while it warned that an increase in orders during the quarter will not be likely to be sustained all year. Shares in Alstom lost 3.5 percent to €66.95.

Among tech companies, Alcatel dropped 5.9 percent to €9.20 despite saying that preliminary quarterly numbers are about where they were expected to be and that its merger with Lucent Technologies would be closed by the end of the year. While Citigroup retained its “buy” recommendation for Alcatel, Dresdner Kleinwort retained a “sell” recommendation and a target share price of €8.60. Elsewhere, Nokia fell 2 percent to €15.14 and Ericsson declined by 3.4 percent to SKr22.60.

Phillips Electronics was down 3.8 percent to €23.06 ahead of its quarterly report, due next Monday.

ASML declined by 2 percent to €15.13 as the semiconductor sector saw losses. STMicroelectronics dropped 2.4 percent to €11.91, while Infineon was down by 2.8 percent to €8.73.

Among gainers on the day, drugmaker Roche ended the session 0.2 percent higher to SFr207.60, and went as high as SFr211, as UBS increased its target share price from SFr230 to SFr270, citing its potential for expansion.

Automobile manufacturer Fiat added 1.7 percent to €10.85 as Goldman Sachs issued a “buy” rating as it resumed coverage of the carmaker.