Insurers showed Europe the way ahead as rising stock markets increased the value of their stock portfolios. The sector was hit hard by the recent uncertainty in global markets but had begun to recover from record lows. Aegon and Zurich Financial each surged 8.6 per cent to €16.45 and SFr189 respectively, while Germany's Allianz was 4.1 per cent higher at €145.80.

Blue-chip Spanish banks BBVA and SCH were spurred higher by an agreement by international banks to keep credit lines open to Brazil. BBVA put on 5.7 per cent to €10.72 and SCH was 6.7 per cent higher at €7.31. Both banks are heavily exposed to Latin America and were part of the group of banks in New York that pledged to sustain their level of business and maintain credit lines.

Switzerland's CS Group brushed aside news from its Winterthur insurance arm that falling equity markets had eaten away much of its hidden reserves. The insurer called for a change in Swiss law to help it through difficult times. Shares in CS Group put on 3.3 per cent to SFr37.60.

Technology and telecommunications shares were firmer, while electronics groups Siemens and Philips showed healthy gains.

New figures for mobile phone sales from researchers Gartner Dataquest played to Nokia's favour. Its global market share has risen from 34.2 per cent a year ago to 35.6 per cent and its shares yesterday rose 2.3 per cent to €14.55. Siemens, world number four in mobiles, also increased its slice of the market and its shares added 4.7 per cent to €51.73.

Sony Ericsson, the joint venture between the mobile phone units of Sony and Ericsson, was the only one of the big five to see its market share fall, sending Ericsson's shares down 3 per cent to SKr6.50. Ericsson stock, which has been highly volatile recently, is still being hit by short selling ahead of tomorrow's close of the €3.2 billion rights issue. However, dealers expect the shares to rally once the issue is completed. - (Financial Times Service)