European stocks got off to a firm start on the first day of trading in 2006 as energy and car stocks led gainers.
The impact of Russia's decision to cut off gas to the Ukraine provided focus on a quiet day.
OMV, the Austrian gas provider, gained 1.3 per cent to €50.12 after it said natural gas supplies had been cut by a third. About 59 per cent of Austria's gas needs come from Russia. But Eon, Germany's largest utility, said it expected there would be no impact.
Traders pointed out that it could buy gas from other regions. Eon shares closed up 1 per cent at €88.22.
In the oil sector, a rise in crude prices in New York on Friday provided a platform for gains. Repsol, of Spain, added 1.2 per cent to €24.96 and Italy's Eni rose 1.2 percent to €23.72.
News that French car sales in December, when adjusted for working days, had risen 2.4 per cent pushed Renault, France's second largest carmaker, up 3.6 per cent to €71.40. Rival Peugeot Citroën gained 3.2 per cent to €50.25.
Overall, the FTSE Eurofirst 300 rose 6.51 points, or 0.5 percent, to 1,282.05, but trading volumes across the region were hit by the New Year holiday in the UK and US.
The XetraDax index in Frankfurt rose 41.72 points, or 0.8 per cent, to 5,449.98, while in Paris, the CAC 40 added 39.69 points, or 0.8 per cent, to 4,754.92.
Adidas-Salomon, the German sports goods maker, added 2.6 per cent to €18.16 as investors continued to warm to comments from Herbert Hainer, chief executive, that the company would beat its €1 billion sales target for football products six months ahead of the World Cup.
Retailer KarstadtQuelle gained 0.8 per cent to €12.93 after it said business over Christmas had been better than expected. The news helped rival Metro rise 2.5 per cent to €41.81.
Danish turbine maker Vestas Wind Systems jumped 2.9 per cent to DKr106.5 after the company won an order from the US for 30 units of its 3 megawatt turbines.
Spanish property firm Metrovacesa rose 9.4 per cent to 56.1 after it emerged that Joaquin Rivero, chairman, and fellow board member Roman Sanahuja had bought a 5.66 per cent stake in the company from shareholder Expo-an.
Van der Moolen, the Dutch market maker, jumped 15 per cent to €6.95 after it named Richardden Drijver its new chief executive.
Trading will resume in New Yrok and London tomorrow following the holiday.
