Another strong session for banks enabled Milan to close the week with a slight rally, although the rest of the market was largely unmoved. The real-time Mibtel index finished 158 higher at 20,700.
BCI put on L350 to L11,817 and Banca di Roma gained L117 to L3,099 as merger talks heated up before BCI's board meeting on Monday. Reports of behind-the-scenes talks between key shareholders in the two banks sent the shares soaring.
Amsterdam rose 12.47 or 1.2 per cent to 1,057.31 on the AEX index thanks mostly to a surge of more than 7 per cent for Aegon, the financial giant.
Paris ended little changed with the CAC-40 index off 7.55 at 3,588.63 in thinnish volume, but well below the best of the day of 3,663.33.
Frankfurt found early reassurance in Wall Street's overnight strength and the firmer dollar, but an uncertain start in US trading pulled the Xetra Dax index back from a high of 4,906.91 to close 14.45 better on the day at 4,809.73.
Bank stocks were back in business, although their advances tended to be exaggerated by thin trade. Hypo-Vereinsbank jumped DM8.15 to DM130.15 on the resolution of an internal rift that had threatened a split between former Vereinsbank and Hypo-Bank staff.
Zurich put on 1.5 per cent as short-covering transactions lifted the market. The SMI index finished 96.0 higher at 6,653.5.
Madrid ended 8.47 higher at 809.03 on the general index with another rise for Endesa helping sentiment.
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