In Europe, equities markets declined on Tuesday as commodities-related shares fell with oil and metals prices.

The Eurofirst 300 fell 1.04 percent to 1,529.91.

The Dax dropped 0.24 percent to 7,769.44, while the CAC-40 was 0.89 percent lower to 5,641.59 and the IBEX was down 1.3 percent to 14,304.8.

The oil sector declined as Total (Euronext: FP; NYSE: TOT) fell 1.57 percent to €57.18 and Statoil (OSE: STL; NYSE: STO) was 2.1 percent lower to Nkr186.25.

The steel sector was mixed, with ThyssenKrupp (FWB: TKA; LSE: THK) up 0.94 percent to €44.88 on the news that it will participate in the building of a high-speed rail line from the center of Munich to the airport there.

On the other hand, Mittal Steel down 1.55 percent to €54.10. Banks declined, still upset by problems in credit markets.

Commerzbank (FWB: CBK) fell 1.55 percent to €27.95.

Credit Agricole (Euronext: ACA) was 1.57 percent lower to €26.94 after Merrill Lynch (NYSE: MER; TYO: 8675) placed it on its “least preferred” list, while Societe Generale (Euronext: GLE) dropped 1.72 percent to €116.95.

Builder Vinci (Euronext: DG) was 2.38 percent lower to €53.72, while construction materials group Lafarge (Euronext: LG; NYSE: LR) fell 2.57 percent to €105.73.

The best performance on the CAC-40 came from Air France, which added 2.38 percent to €24.95 after it said it will raise prices to cover fuel charges.

Utilities were also higher with Eon (FWB: EOA; LSE: EON; NYSE: EON), at the top of the leaders on the Dax, gaining 1.28 percent to €128.38.

RWE (FWB: RWE) added 1.1 percent to €86.94, while EDF (Euronext: EEN) gained 0.54 percent to €72.95 and Suez (Euronext: SZE; NYSE: SZE) was up 0.1 percent to €39.91.

In Europe on Tuesday the FTSE Eurofirst 300 dropped 0.3 percent to 1,544.99. The real estate and oil sectors were lower, while carmakers saw gains.

Porsche (Xetra: POR3; FWB: POR3) added 2.7 percent to €1,058.31, while Volkswagen (OTC: VLKAY) gained 8 percent to €94.94 on a full-year report that showed operating profit up 52 percent in 2006.

Brewers were mixed after Carlsberg (OMX: CARL A, CARL B) said that higher capital expenditures would limit 2007 profit growth. Even though its full-year report fulfilled expectations, the Danish brewer dropped 6.7 percent to DKr583. Heineken (Euronext: HEIA) was also lower, by 2.3 percent to €39.36, ahead of its report that is due Wednesday.

Elsewhere in the sector, InBev (Euronext: INB; NYSE: ABV) gained 0.5 percent to €53.07 as rumors of a merger with Anheuser-Busch (NYSE: BUD) continue to circulate. Grolsch (Euronext: GROL) added 3.3 percent to €32.94 after it reported that full-year profits exceeded expectations and announced an extra dividend.

The oil sector declined on lower prices for crude oil. Total (Euronext: FP; NYSE: TOT) dropped 1.5 percent to €52.78, while Statoil (OSE: STL; NYSE: STO) fell 1.6 percent to NKr156.

In the real estate sector, Unibail (PAR: UL) was 1.3 percent lower to €235.80 on a downgrade from “buy” to “hold” from Deutsche Bank. Also hurting the sector as a whole was news out of the UK that rising interest rates there are hurting the market.

The FTSE Eurofirst 300 was lower in Monday, closing at 1533.15, a decline of 0.6 percent.

The Greek banking sector saw declines after a new report showed that use of household credit grew substantially in November, causing some investors to worry that with Eurozone interest rates rising loan defaults could reach worrisome levels. Alpha Bank dropped 1.2 percent to €24.02, while National Bank of Greece fell 1.3 percent to €38.60. EFG Eurobank was 2 percent lower to €29.10 and Bank of Piraeus was down 2.2 percent to €26.40.

Stock exchanges were lower after it was announced that stockholders in the London Stock Exchange had rejected US exchange operator Nasdaq’s bid for the company. Deutsche Borse dropped 2.2 percent to €157.45. Euronext, still in the process of closing a merger with NYSE Group, fell 4.2 percent to €85.95.

In the oil sector, a decline of 2 percent in the price of crude oil sent shares lower. Statoil was 0.6 percent lower to NKr162.25, hurt not only by lower prices but by a fourth quarter report that did not rise to expected levels. French oil company Total was down 1.2 percent to €52.10. Neste Oil dropped 2.9 percent to €23.70.

The semiconductors sector was mixed. STMicroelectronics dropped 1.4 percent to €14.53, but Infineon added 1.3 percent to €12.15 after last week’s announcement of new contracts and on new reports that private equity could be interested in bidding. Meanwhile, chip-making equipment manufacturer ASML dropped 2.7 percent to €19.16.

The European equities markets were higher on Wednesday, aided by gains in the banking and oil sectors. The FTSE Eurofirst 300 added 1 percent to 1,528, its highest closing level in six years.

In the oil sector, Statoil gained 1.6 percent to NKr163.50 on comments from UBS that outlined the upside of an announced merger with Norsk Hydro. The broker upgraded its recommendation on Statoil from “neutral” to “buy” and hiked its target share price from NKr166 to NKr185.

Banks saw gains in several nations. In Spain, JP Morgan issued upgrades for both BBVA and Santander. BBVA added 1.4 percent to €19.35 after its recommendation was raised from “neutral” to “overweight”, while Santander was 2.3 percent higher to €143.49 on an identical hike in its rating.

In Italy, Morgan Stanley upgraded both Banca Monte dei Paschi di Siena and Capitalia from “underweight” to “equal weight”. Siena was up 0.7 percent to €4.9525 and Capitalia gained 2.3 percent to €7.02. Meanwhile, the broker added Banco Popolare di Verona e Novara to its model portfolio, sending the bank’s shares up 3.1 percent to €24.10.

Meanwhile, UniCredit’s announcement that it will buy out minority shareholders in German bank HVB Group and Bank Austria Creditanstalt send shares in both banks significantly higher. HVB gained 4.2 percent to €36.00, while Bank Austria was 4.7 percent higher to €131.50. UniCredit, which already owns 95 percent of both banks, was up 1.6 percent to €7.2050.

Among losers on the day was SAP. The software maker dropped 6.5 percent to €35.89 when it said that margins would be lower this year and failed to issue an outlook on license sales.

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.

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.

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.

In Europe on Wednesday the FTSE Eurofirst 300 came within two points of a five and a half year high as it closed up 1.1 percent to 1,487.89.

Technology sectors saw gains on the session. SAP, the software group, was 1.6 percent higher to €40.25. Meanwhile, in the semiconductors sector, ASML gained 2.7 percent to €18.66.

Lufthansa added 1 percent to €20.89 in the wake of an announcement last Friday that it will sell its 50 percent stake in Thomas Cooke. Dresdner Kleinwort called the sale a move “in the right direction”, reiterating its “buy” recommendation on the air carrier and increasing its target share price from €20 to €21.60.

Sacyr Vallehermoso was 2.2 percent higher to €47.02 although JP Morgan began coverage by rating the Spanish builder at “underweight” and setting a target share price of €36, citing concerns about the purchase of a 20 percent stake in oil company Repsol and what it called a “very high” purchase price for road concession operator Europistas.

The Norwegian oil sector was mixed in the aftermath of an announced merger between Statoil and Norsk Hydro. While Norsk Hydro added 1.6 percent to NKr191, Statoil dropped 0.9 percent to NKr162.50 even though S&P reiterated its “strong buy” recommendation.