Equities in Paris ended a volatile week with a see-saw performance as worries about the free-float for the Brazilian real were later erased by a strong start on Wall Street.
In early trading the CAC-40 index came within a whisker of sliding through the 3,900 resistance level but after a rapid swing, it closed 57.75 higher at 4,054.81, its peak of the session.
Technology stocks turned in the best performances with Cap Gemini rising #10.10 to #144.50 and ST Microelectronics gaining #5.65 to #83, gains of more than 7 per cent in each case. Among the recently heavily sold banks, BNP jumped #2.80 to #69.05.
An increase in target price to #103 by Goldman Sachs failed to have any positive impact on Total which ended off #1.40 at #90.30. Elf Aquitaine was also a weak feature, dipping #2 to #96.
Stockholm was dominated by activity in the motor sector as Volvo took a minority stake in rival truck and busmaker Scania, and said it wanted to buy the whole company. Scania shot up 34 Swedish krone (#3.73) or 19 per cent to SKr211 (#23.17) and its biggest shareholder, Investor, climbed SKr19.50 (#2.14) to SKr368 (#40.41). Volvo skidded SKr8.50 (93 cents) lower to SKr211 (#23.17) as the general index picked up from a low of 3,153.32 to close 4.63 higher at 3,218.61.
Frankfurt staged a strong recovery in early afternoon trade and the Xetra DAX index closed 71.03 higher at 4,973.78.
Bargain-hunters targeted some of the banks, notably Deutsche Bank and Dresdner Bank after their steep losses earlier in the week. Deutsche put on #1.57 to #48.48 and Dresdner #1.55 to #36.
However, HypoVereinsbank extended its slide into a sixth straight session with a loss of 52 cents to #63.28. Analysts said the stock clearly had further to fall before investors thought it was worth another look.
Lufthansa called a halt to a four-day slide as bargain-hunters turned out after a 50 per cent-owned subsidiary reported solid results. The shares, which closed a week earlier at #20.59, rebounded 87 cents to #18.96, also spurred higher by the dollar's returning strength.
Amsterdam ended 14.46 higher at 528.57 on the AEX index in spite of a stomach-churning day for ABN Amro where 29.2 million shares changed hands. ABN fell to #16.20 in early trading after Standard & Poors gave the group's Latin American connections added spin by lowering the bank's rating outlook to negative. ABN, which acquired Banco Real of Brazil last year, gets almost a fifth of total profits from Latin America. A late rally left the shares off 15 cents at #17.15.
Elsewhere in financials, Aegon rose #3.90 to #95.35 and Fortis 60 cents to #34.80. Telecoms leader KPN continued to top the performance charts. It added #4.85 at #50.05 for a two-day advance of more than 18 per cent.
