European bourses rallied, rebounding steadily from Monday's widespread shakeout for equities. Helped by a strong session for the drinks sector, the FTSE Eurobloc 100 index rose 1 per cent to 1,088.42. The FTSE Eurotop 100 index added 1.2 per cent at 2,999.30 and the broader FTSE Eurotop 300 index 1.2 per cent at 1,302.21.
The beverage sector was the top performer, boosted by a 3.3 per cent advance at Dutch brewer Heineken and a strong run at British spirits group Diageo.
Frankfurt swung higher and by the close the Xetra Dax was 68.36 better at 5,388.76 and within six points of its best of the session.
DaimlerChrysler's nine-month results met with a warm reception from investors and analysts. The shares rose #1.69 to #72.29. In contrast, Deutsche Bank was a quarterly casualty, slipping #1.65 to #66.50 on what were widely seen as disappointing third-quarter figures.
Talk of a top management reshuffle sent HypoVereins bank up #4.72 or 8.2 per cent at #62.30. Rumours of boardroom resignations have been simmering since an external audit criticised management over property writedowns. Mannesmann stayed a firm market amid persistent speculation that Vodafone Airtouch, the global cellular leader, had the group in its takeover sights.
Paris closed higher, assisted by a strong performance by telecom shares. The CAC-40 index added 37.31 to 4,706.59, having briefly forced through technical resistance at 4,710.
Alcatel shares, given a rough ride on Monday, regained favour with investors, rising #4.60 to #138.80. TotalFina continued to surge ahead of its merger with Elf Aquitaine which will give the group a weighting in the CAC-40 second only to France Telecom. The stock gained #2.80 at #125.50.
Amsterdam rose 4.46 to 552.28 on the AEX index after a rampaging performance by the chemicals sector. Akzo Nobel jumped #1.64 or 4.4 per cent to #39.21 amid widespread confidence that the group's third-quarter earnings - out today - would surprise on the upside.
Other firm features included retail leader Ahold which gained 61 cents to #29.40. Brewer Heineken jumped #1.16 to #38.01.
Madrid stocks enjoyed respectable gains as Telefonica led the market higher. The Spanish telecom giant rose 53 cents or almost 4 per cent to #15.3. The blue-chip Ibex-35 index rose 1.5 per cent to close at 9,443.3.
Telecom equipment maker Amper added 28 cents to #7.28 after reports that Lucent Technologies of the US planned to double its stake to above 24 per cent.
Milan was little changed with the all-share Mibtel index closing up 55 at 22,789. UniCredito, the banking group, managed to outpace a sluggish market amid talk of a deal with BBVA, the product of the merger between BBV and Argentaria.
