The FTSE Eurofirst 300 was up, but just barely, on Monday, adding only 0.04 percent to end the session at 1,538.32. The energy sector was lower on bids news, while the banking sector declined on profit-taking.

Airlines were higher on the session, however. Aer Lingus added 1.8 percent to €2.85 after Ryanair said that it might make a new bid for its rival. This could happen as soon as in May if its previous, lapsed, bid is cleared by competition authorities of the European Commission. Ryanair, meanwhile, gained 6.8 percent to €11.98 on an unexpected report of net profits that were up 30 percent in its fiscal third quarter.

Profit-taking in the banking sector was encouraged by brokers who issued downgrades to both SEB and Credit Suisse. ING dropped its recommendation on Credit Suisse from “buy” to “hold”, sending the Swiss bank 0.7 percent lower to SFr88.10. Swedish Bank SEB dropped 1.9 percent to SKr230.50 on a downgrade from “hold” to “sell” from Deutsche Bank, which said that the benefits of a possible merger with Nordea were already priced in. Nordea held steady at SKr110.

In the energy sector, Endsea was lower after Eon’s Friday bid was lower than Friday’s closing price but higher than its previous offer for the Spanish company. While some Endsea shareholders had hoped for a higher bid, Eon’s bid was high enough according to an analyst at Dresdner Kleinwort. Endsea dropped 2.4 percent to €38.10, while Eon fell 0.4 percent to €108.97. Acciona, the Spanish builder which holds 21 percent of Endsea, added 0.3 percent to €155.45 amid speculation that it could oppose the deal after it said last week that it would sell its stake in Endsea if the bid by Eon is accepted.

In Europe on Tuesday, the FTSE Eurofirst 300 was 0.3 percent higher to 1,522.27.

The airline sector was higher on news from mergers and acquisitions, as well as on recent broker upgrades and recent lower oil prices. Lufthansa was 1.8 percent higher to €21.76 and Iberia of Spain gained 2.3 percent to €3.17. Ryanair added 8 percent to €11.12. Air France-KLM was up 7.2 percent to €35.01 after it said that the time was not right for it to bid on more shares in Alitalia. It already has a strategic partnership with the Italian air carrier. Alitalia was not lacking for suitors however, as it has received expressions of interest from 11 potential bidders. The Italian airline added 3.6 percent on the session to €1.13.

In the pharmaceuticals sector, Sanofi-Aventis dropped 0.7 percent to €68.55 even though rumors continued to circulate that it is near the announcement of a merger with US pharma Bristol-Myers Squibb. The decline came as analysts at Bear Sterns said that the large amount of cash that would have to be part of the deal in order for Bristol-Myers to accept a deal could dilute earnings. However Bear Sterns and Deutsche Bank both said that there would be advantages to such a deal.

The telecommunications sector was mixed. Deutsche Telekom dropped 0.1 percent to €13.59, but France Telecom added 0.5 percent to €21.29 and Telecom Italia gained 0.7 percent to €2.29.

In Europe on Monday the FTSE Eurofirst 300 added 0.3 percent to 1,517.07 on Monday despite declines in the telecommunications sector.

Telecoms were lower after Deutsche Telekom issued its second profits warning in six months, citing competition and currency issues. Citigroup lowered its recommendation on the German telecom from “hold” to “sell” and Deutsche Telekon dropped 4 percent to €13.60. Elsewhere in the sector, France Telecom fell 0.9 percent to €21.18, while Telecom Italia and Swisscom were each 1.5 percent lower, to €2.27 and SFr471.50 respectively.

Car and truck manufacturers was gains on the session. On rumors that it could be a target for Volvo, MAN added 2.6 percent to €78.86. Volvo was 1 percent higher on the talk, to SKr502, while Scania, the recent target of MAN’s failed hostile bid, was up 3.5 percent to SKr485. Fiat gained 2.8 percent to €16.67 on a target share price hike from JP Morgan.

The airline sector was up on merger hopes and on upgrades from UBS, which raised its recommendation on Lufthansa and Iberia from “neutral” to “buy” and hiked target share prices for both Ryanair and Air France-KLM. Lufthansa was up 1.1 percent to €21.38, Ryanair gained 1.3 percent to €11.04, Air France was 1.5 percent higher to €32.67, and Iberia gained 3.3 percent to €3.10. Meanwhile, Alitalia added 1.9 percent to €1.10.

In a holiday shortened week, the FTSE Eurofirst 300 added 0.2 percent to close on Friday at 1,486.08. Gains peaked on Wednesday when the index breached the 1,500 level.

Airlines did well during the week as falling crude oil prices provided the hope that fuel costs would decline. Ryanair added 5.3 percent to €10.98, while Air France-KLM was 7.2 percent higher to €34.20. Lufthansa was also helped by positive comments from brokers after it sold its 50 percent share of travel company Thomas Cook, gaining 7.8 percent over the week to €22.47.

The telecommunications sector also saw gains. Telecom Italia added 3.1 percent to €2.36, while Deutsche Telekom was 4.4 percent higher to €14.45 and KPN gained 4.9 percent to €11.30.

On the other hand, European utilities were hurt by concerns that European Union regulators would come down hard on the sector after an investigation found evidence of misbehavior. Gaz de France was 1 percent lower to €34.50 and Suez fell 2.1 percent to €38.42 among rumors that a bid for Suez from a French billionaire could prevent their proposed merger. Elsewhere in the sector, RWE dropped 3.6 percent to €80.50, while Eon was down 5.4 percent to €97.26 and Veolia Environment fell 9.2 percent over the week to €53.05.

The oil sector was hurt by falling crude oil prices. Total ended the week 3.5 percent lower to €52.75, while Neste Oil dropped 5 percent to €21.89 and Statoil fell 5.9 percent to NKr155.50.

The FTSE Eurofirst 300 was 0.3 percent lower on Thursday, closing at 1,499.03 on declines in the oil and steel sectors. The decline came even though the telecommunications and airlines sectors were up on the session.

Among telecoms, fixed-line carriers added 1.7 percent. France Telecom added 1.4 percent to €21.68, while KPN gained 3.2 percent to €11.26 and Hellenic Telecom was 3.5 percent higher to €24. Meanwhile, mobile carrier Cosmote added 3.3 percent to €22.98.

Airlines were helped by declines in crude oil prices as investors hoped that fuel prices would also go down. Air France-KLM added 1.2 percent to €33.12. Lufthansa was helped when Dresdner Kleinwort raised its target share price from €21.60 to €26 and repeated its “buy” recommendation on the air carrier. The positive comments came after Lufthansa sold its 50 percent stake in Thomas Cook, the travel agency. Lufthansa was 2.1 percent higher to €21.96. Ryanair gained 3.6 percent to €10.80 after it said that while its aircraft were slightly less full on average last year, it carried 19 percent more passengers.

In the oil sector, Total dropped 2 percent to €53.45, while Neste Oil fell 3 percent to €22.04 and Statoil was 3.7 percent lower to NKr157.25.

Steelmakers continued to suffer from a sector downgrade issued by Credit Suisse on Wednesday. Mittal Steel dropped 2.8 percent to €30.65, ThyssenKrupp was 3.4 percent lower to €34.73, and Vallourec fell 4.7 percent to €208.40.

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.

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.

Mergers and acquisitions news continued to drive the European equities markets on Thursday as the FTSE Eurofirst 300 saw its highest closing level since mid-2001 and indices in Spain and Switzerland hit all-time highs. The Eurofirst added 0.6 percent to 1,410.11.

MAN was down again, dropping 3.6 percent to €66 as the fallout of Volkswagen’s purchase of 15 percent of the German truckmaker’s shares Wednesday continued. Analyst opinion is that VW made the purchase to protect its own truck unit and its investment in Scania, in which it is the largest shareholder. MAN made a bid for Scania last month. Scania’s B shares added 0.8 percent on the session to SKr465.50, while VW gained 1.2 percent to €69.65.

Low-cost air carrier Ryanair dropped 0.8 percent to €8.63 after it said it has purchased 16 percent of Aer Lingus and intends to bid for the remaining shares in the Irish airline. With Aer Lingus saying that they reject the bid and analysts saying that there is not much chance of the bid effort succeeding Aer Lingus, which only began trading publicly on Monday, added 15.5 percent to €2.90.

The steel sector saw advances on the day after Tata Steel of India said it was considering a bid for Corus. This follows Mittal Steel’s acquisition of Arcelor earlier in the year. Corus added 15.8 percent to €7.03 on the talk, and other steel makers gained on the possibility of further consolidation within the sector. Arcelor Mittal gained 3 percent to €27.70, while Salzgitter advanced 3.2 percent to €77.82 and ThyssenKrupp was 3.6 percent higher to €27.18.

Despite gains in several sectors due to continuing mergers and acquisitions news and rumors, the FTSE Eurofirst 300 dropped 0.1 percent to 1,370.04 on Monday as crude oil prices continued to decline.

Speculation that Spanish construction company OHL was discussing a possible merger with French peer Eiffage sent Eiffage 3.6 percent higher to €78.25. OHL added 4 percent to €15.75. Meanwhile, Sacyr Vallehermoso gained 1 percent to €32.05 on rumors that Sacyr is thinking of adding to its current 33.3 percent holding in Eiffage.

In the pharmaceuticals sector, UCB of Belgium said it would purchase Schwarz Pharma of Germany, a move that Credit Suisse said made sense. The news sent UCB 0.1 percent lower to €47, but Schwarz was 17.7 percent higher to €89.07. Others in the sector were benefited by the news, including Novo Nordisk, which gained 1.3 percent to DKr432.

There was also bids talk in the airlines sector as Lufthansa was said to be looking to buy, although it said that remarks by its CEO had been misinterpreted. Lufthansa dropped 0.4 percent to €16.14. Despite the denials SAS, which was said to be one of the rivals Lufthansa was interested in, was 2.1 percent higher to SKr97. Ryanair added 3.7 percent to €8.45. The gains were helped as well by the falling oil prices.

Declines in the oil sector were substantial. Neste Oil fell 3.8 percent to €21.16, while Norsk Hydro dropped 4.5 percent to NKr138.75 and Statoil declined 5 percent to KNr147.25.

In Europe on Monday, the FTSE Eurofirst 300 added 0.9 percent to 1,343.55 as oil prices declined and a ceasefire between Israel and Hizbollah went into effect. Also helping the advance was good performance in the insurance sector.

Despite falling prices, the oil sector saw gains after BP said that it could keep half of its Prudhoe Bay field in Alaska in production despite the necessity to replace corroded pipelines. Total was 0.7 percent higher to €53.05, while OMV added 1.1 percent to €45.40.

Airlines were mixed after the security level in Britain was lowered and some restrictions on carry-on luggage were lifted after last week’s terrorist warnings and arrests. Air France-KLM was up by 1.8 percent to €19.60, while Lufthansa gained 2 percent to €14.52. On the other hand, Ryanair dropped 1.2 percent to €7.150 on its complaints that BAA was not doing enough to get delayed flights off the ground.

The insurance sector as a whole was helped by a Citigroup upgrade from “neutral” to “positive”. Both Citigroup and Deutsche Bank named Allianz, Axa, and Zurich Financial as their favorites in the sector. On the comments, Allianz was 1.2 percent higher to €130.09, while Zurich Financial gained 1.5 percent to SFr282.00 and Axa advanced by 1.6 percent to €28.55. Reinsurers Munich Re and Swiss Re were also helped by the comments, adding 1.4 percent to €115.65 and 2 percent to SFr93.00 respectively.

An upgraded by Deutsche Bank from “hold” to “buy” helped steel maker ThyssenKrupp 2 percent higher to €26.61.