Luxury goods leader LVMH was the top performer in the FTSE Eurotop 100 index, as speculative talk emerged after the initial cash settlement in the long-running Gucci feud. Rumours swirled about the shares, including the possibility of a share buyback, imminent acquisition news and talk that a heavyweight broker had turned more positive on the stock.

Worries about shrinking consumer demand and recent broker downgrades were put aside as the group took possession of $806 million from the sale of Gucci shares. The stock surged to €44.60 and by the close was 6.7 per cent higher at €44.40. The performance extended the shares' gains since late September to more than 50 per cent.

Banks remained in demand, with positive broker comment on Deutsche Bank helping to keep the sector in focus. Goldman Sachs cut its Deutsche Bank earnings forecasts for this year and next, but with the stock trading at 10-year valuations, many felt near-term concerns were in the price. As a result, it saw considerable upside potential for the shares.

Deutsche Bank rose 1.8 per cent to €62.11. Commerzbank put on 6.2 per cent at €17.69 and SociΘtΘ GΘnΘrale 0.7 per cent to €57.35. ABN Amro, up 6.1 per cent on Tuesday in spite of a widely expected profits warning, dipped 0.4 per cent to €17.29.

The two big Spanish banks were also supported as worries about Argentina eased. Banco Bilbao Vizcaya rose 1.8 per cent to €13.58 and Santander Central Hispano 3 per cent to €9.57.

Telecommunications stocks, showing rapid recovery in recent days, slowed - but France Telecom continued to rally, rising 6.2 per cent to €44.61. The third quarter results are out today after the market closes and the shares have been buoyed by recent changes to the terms for third generation mobile licences.

France Telecom's mobile offshoot, Orange, which reports today, rose 1 per cent to €9.73. Bouygues, another licence-holder, rose 1.3 per cent to €37.28.