German pharmaceutical company Bayer rose 3.7% after the company reported an above-forecast increase in first-quarter net profit to 2.8 billion euros, from 600 million euros a year ago.

France Telecom gained 2.9% after it reported that its first-quarter sales rose 1.8% to 12.8 billion euros. France Telecom said its gross operating margin increased to 36.3% from 36.2% on cost controls and confirmed its objectives for 2007.

German chemicals company BASF added 1.8% after its first-quarter profit climbed a better-than-forecast 9% to 1.04 billion euros, with sales up 16% to 14.63 billion euros.

German industrial company Siemens rose 1% after early losses. The company unveiled new financial targets, targeting a return on capital employed between 14% and 16% by 2010, up from the 10% achieved in fiscal 2006.

Decliners

Ericsson declined 0.4% after it announced that its first-quarter net income rose 27%, just below analyst forecasts. UBS downgraded the stock to neutral.

Electrolux sank 5.9%. The second-largest household appliances maker in the world said North American sales declined and raw-materials costs will erode full-year profit.

Oil and precious metals

Gold and silver were little changed after recovering from earlier losses on speculation the dollar may fall to a record low against the euro. Gold for immediate delivery fell $2.20, or 0.3%, to $684.05 an ounce. Silver for immediate delivery fell 3 cents, or 0.3%, to $13.77 an ounce.

Crude oil fell after Iran said it was making progress in talks with the European Union on Iranian nuclear research, while some analysts predicted supplies of crude could meet demand for gasoline during the coming summer. Crude oil for June delivery fell 33 cents, or 0.5%, to $65.51 a barrel in after-hours electronic trading on the New York Mercantile Exchange and stood at $65.61 in morning trading in London. Brent crude for June settlement fell 33 cents, or 0.5%, to $68.24 on the ICE Futures exchange.

Currencies

The dollar rose against other major currencies in morning European trading Thursday. The euro traded at $1.3614, down from $1.3636 late Wednesday in New York. The British pound traded at $2.0002, down from $2.0012. The dollar fetched 119.11 Japanese yen, up from 118.71.