The FTSE Eurofirst 300 closed up 1.2 percent to 1,384.01 on Wednesday as the semiconductor sector saw advances. The telecommunications sector was mixed. Banks, meanwhile saw advances.

In the semiconductor sector, ASML added 3.5 percent to €17.40 after it said that its outlook was good for the coming year and announced a share buyback worth €400 million. Even so, Dresdner Kelinwort Wasserstein reiterated its “hold” recommendation” and target share price of €17. Elsewhere in the sector, Infineon was up 3.3 percent to €9.05 and STMicroelectronics advanced by 2 percent to €15.20 on good sales news from Texas Instruments.

Telecoms were mixed, as Nokia gained 0.4 percent to €17.43 in anticipation of an earnings report due to be released later in the day but Ericsson dropped 1.7 percent to SKr28.80 ahead of its quarterly results, to be released on Friday. Nomura reiterated its “sell” recommendation on Ericsson, while Credit Suisse had more positive comments on the Swedish company.

Philips Electronics added 4 percent on the day to €27.32 after losing value on Tuesday despite a positive earnings report.

Among banks, Credit Suisse and ING each added 2.4 percent to SFr74.90 and €32.04, while BNP Paribas gained 1.6 percent to €74.05.

Schering, the German pharmaceuticals company, added 0.3 percent to €86.29 on a 4 percent gain in operating profits in the first quarter.

In Europe on Friday, the FTSE Eurofirst 300 was up 0.5 percent to 1,383.19. The day’s gain helped the Eurofirst to add 1 percent on the week.

In the pharmaceuticals sector, Schering was up 4.6 percent on the week to €86.30 on an offer from Bayer that was higher than an earlier bid from Merck, which withdrew its bid on the grounds that it could not justify upping its offer. Even though WestLB issued a downgrade on Bayer from “add” to “hold” because it considered the possible deal “ambitious”, Bayer still added 6.8 percent on the week to €35.42. Merck, meanwhile, gained 1.4 percent to €80.99 on a reiteration of WestLB’s “buy” recommendation. Elsewhere in the sector, Sanofi-Aventis was up by 5.2 percent to €77.45 on news that a patent dispute had been settled.

In the automobile manufacturing sector, Volkswagen gained 6.7 percent to €62.13, while Fiat was up 7.6 percent to €10.01. BMW added 8.8 percent to €46.01 on indications that it will do well this year.

French telecom equipment maker Alcatel gained 1.6 percent to €13.05 on Friday, a two-year high, bringing its advance for the week to 8.9 percent. The gains came on news that it had re-entered merger talks with US company Lucent Technologies. Rumors that a merger would prompt Alcatel to sell its 9.5 percent stake in defense group Thales. This sent shares in Thales up 4.5 percent on Friday, to €37.65.

In Europe on Thursday, the FTSE Eurofirst 300 dropped 0.1 percent on the day to close at 1,376.57, down for the first time on over two weeks of trading sessions. On the other hand, Frankfurt’s Xetra Dax gained 0.3 percent to 5,947.11 several German companies saw advances on the day.

Utilities were down as merger talks remained in the news. Italy’s Enel dropped 0.7 percent to €7.02 despite a 48 percent gain in net profits for the full year and the announcement of an increased dividend. Suez also dropped 0.7 percent to €34.37, while Gaz de France declined by 0.9 percent.

Banks were up, led by Commerzbank, which added 2.9 percent to €31.94 on an upgrade to “buy” from UBS. Goldman Sachs raised its earnings predictions on several Nordic banks, sending their shares up as well. SEB gained 2.5 percent to SKr186.50, while Nordea Bank was up 1.3 percent to SKr95, Swedbank added 1.2 percent to SKr213.50, and SHB rose 0.5 percent to SKr211.

Swiss watchmaker Swatch lost 2.2 percent to SFr220.10 on a profits report that did not meet expectations.

Among the companies that helped the Xetra Dax on the day were Schering, Lufthansa, and Infineon. Chipmaker Infineon gained 8.5 percent to €8.92, while pharmaceutical company Schering was up 2.7 percent to €85.23 on reports that Bayer was thinking about bidding for the company, which is already facing a hostile takeover attempt from Merck. Lufthansa added 5.4 percent to €14.52 on the announcement that it’s full year operating profits were up by 51 percent.

The FTSE Eurofirst 300 was up 0.1 percent on Friday and gained 1.1 percent over the week to close at 1,369.38. Mergers and acquisitions provided most of the activity during the week.

Doubts that a widely-touted merger between Deutsche Borse and Euronext would come to anything did not hurt the shares of either stock market operator. Deutsche Borse was up 13.2 percent over the week, ending at €117.74, while Euronext was up 15.5 percent to €63.50. Some analysts said that such a merger would face a number of problems, including a monopoly on the derivatives market but not least where the headquarters of the newly created company would be located.

Analysts also had questions about a rumor that Zurich Financial Services is in discussions with US company St. Paul Travelers concerning a merger. Despite the questions, ZFS was up 4.7 percent on the day and gained 5.4 percent over the week to close at SFr316 on Friday.

In the pharmaceuticals sector, Schering was up and Merck was down over the week after Schering rejected an offer worth €77 per share from Merck. Merck dropped 4.6 percent to €79.90, while Schering gained 24 percent to €82.85.

In the automobile manufacturing sector, BMW was up 4.3 percent to €42.30 after it issued a positive guidance report that prompted a number of brokers to upgrade the carmaker’s shares.

Equities markets in Europe saw advances on Monday on the strength of gains the oil sector as the FTSE Eurofirst gained 0.2 percent to 1,345.92, a new four and a half year high.

The oil sector was up on higher crude oil prices. Statoil gained 3.5 percent to €178. Meanwhile Saipem, the largest oil field services company in Europe, was up 3.1 percent to €16.04.

The banking sector was also up, with more takeover talk in Italian banking. Mediobanca, rumored to be a target despite an agreement that gives core shareholders 54 percent of the bank, was up 4.2 percent to a record high share prices of €17.60. Capitalia, also seen as a potential takeover target, gained 2.8 percent to €6.325. Meanwhile, EFG Eurobank was up 4 percent to €33.06 as JP Morgan raised its price target from €40 to €44 on the strength of the bank’s expansion in southeastern and central Europe.

Utilities were up on the day as well, with Electricite de France gaining 2.2 percent to €41.56 on consolidation talk. Eon gained 0.6 percent to €93.44 after its chief executive said he expects that three dominant players will emerge in the sector.

The pharmaceuticals sector was mixed. Schering was up 3.3 percent to €58.39 on an announcement that its fourth-quarter operating profits were up 30 percent, slightly higher than forecasts. It also said that it will buy the property and equipment used by its US partner, Chiron, to produce the drug Betaferon (Betaseron in the US), which is expected to be approved for the treatment of early-stage multiple sclerosis before the end of the third quarter. Shares in Novartis, which has not yet finalized its planned purchase of Chiron, was up 0.1 percent to SFr71.50.

Elsewhere in the sector, Serono dropped 2.2 percent to SFr959 as concern grew about competition between its multiple sclerosis drug Rebif with Betaferon. Sanofi-Aventis dropped 3 percent to €71.70 after regulators in the United States delayed final approval of Acomplia as a weight management treatment and rejected the drug as a stop-smoking aid.