Banks and oils propelled Paris to record levels as European markets brushed aside renewed wobbles for the euro. Madrid was weak, but most centres made solid progress, notably Paris which sent the CAC-40 index up to a record close of 4,407.65, a 36.12 gain.
Among the heavyweight sectors, oil stocks were firm as international oil prices made another assault on recent peaks. Total gained €3.10 at €221.10 and Elf Aquitaine €4 at €147. Banks, too, were in the thick of the action with BNP up €2.50 at €78.50 and Societe Generale €4.30 at €169.40. Disposable pen group Bic, a weakened stock lately following a profits warning, rallied €4.55 or 9.4 per cent to €53.10.
Bull powered upwards on an outbreak of takeover talk as speculation mounted that the state's 17.3 per cent stake in the computer group was set to change hands.
Sentiment was also boosted by an upgrade by Merrill Lynch which moved its short-term rating to `buy'. The stock ended €1.37 or 21 per cent higher at €7.90 in above-average volume.
Frankfurt ended 37.38 higher at 5.360.44 on the Xetra DAX index after a high for the session of 5,403.26.
Mannesmann added €1.50 at €123.60 amid talk of increased corporate activity with the telecoms group said to be lining up a €3 billion financing deal to partly pay for planned Italian acquisitions.
Chemicals were mixed as investors reflected on Thursday's batch of results from traditionally defensive sectors. Restaurants and brewers were up 2.1 per cent and gains of 2 per cent apiece were recorded by the drug, retail and beverage sectors.
The FTSE Eurobloc 100 index added 7.30 at 1,084.64 and the FTSE Eurotop 100 index 17.39 at 3,060.45. Encouragingly, though, the best performance came from the broader FTSE Eurotop 300 index which rose 0.7 per cent or 9.24 to 1,325.49. sector. BASF lost 80 cents at €41.60 but Hoechst recovered €2.35 at €44.85. Lufthansa, weak in the preceding session following a profits warning, rallied 33 cents at €21.95. Linde came off €7 at €576 after a downgrade at Merrill Lynch which cut it to "intermediate neutral" from "accumulate".
Milan closed off its best levels after a cautious session. The Mibtel index turned back from a high of 25,118 to finish with a gain of 223 at 25,068. Generali closed 2.1 per cent higher at €36.83 after a dramatic shareholders' meeting at which the board removed Mr Antoine Bernheim as chairman and replaced him with the chairman of its domestic Alleanza group, Mr Alfonso Desiata.