Advancers

ABN Amro gained 1.6% after posting a 7.6% gain in annual net profit that topped market forecasts. The bank intends to raise shareholder returns in 2007 after concentrating on acquisitions and restructuring over the past two years. Julius Baer, Swiss bank, gained 6.1 per cent after reporting a forecast-topping 35 per cent rise in full-year net profit on growth in newly-developed Asian markets. MAN of Germany rose 3.4 per cent after Goldman Sachs updated the stock to buy and JPMorgan raised its price target. Fixed line telecoms groups advanced after After BT Group of Britain announced robust Q3 core earnings and a bright guidance as it continued to add new broadband customers. BT shares gained 3.8 per cent, while Deutsche Telekom gained 1.1 per cent, Hellenic Telecom rose 1.8 per cent and Telekom Austria climbed 1.4 per cent. Renault, the French carmaker, reported its 2006 operating margin declined on last year but that it achieved its 2.5 per cent target through cost cuts and improved quality. Renault shares gained 1.1 per cent.

Decliners

Altadis, the Spanish tobacco company, shed 2.8% after Imperial Tobacco of Britain said it its acquired US group Commonwealth Brands. Altadis had been supposed to be top of Imperial acquisition list - earlier on Thursday UBS had downgraded Imperial on the expectation it would launch a hostile bid. Syngenta, Swiss agrochemicals maker, posted a 12 per cent rise in full-year net profit which missed expectations, as sales declined 1 per cent. Shares fell 2.3 per cent. Dutch office supplies wholesaler Buhrmann plunged 10.1 per cent after falling short of expectations with Q4 underlying profit

Oil and gold

Oil prices recovered toward $58 on Thursday after cold weather cut fuel stocks in United States. U.S. Crude oil futures gained seven cents to $57.78 a barrel in early trade in London. Brent crude gained 20 cents to $57.43. Gold fell for a second straight day on signs supply to refineries is growing faster than demand from investors seeking an alternative to the dollar. Gold for immediate delivery dropped $1.90, or 0.3%, to $649.55 an ounce in early trade in London.

Currencies

The euro declined against the U.S. dollar on Thursday as markets awaited a decision by the European Central Bank on interest rates. The 13-nation euro bought $1.2986 in morning European trading, down from $1.3006 in New York late Wednesday. The British pound fell slightly to $1.9676 from $1.9692. The dollar gained traded at 121.09 Japanese yen, up from 120.66 yen on Wednesday.