A strong showing in the technology, motor and oil sectors sent European markets broadly higher. But trade was reported to be very slow with many investors extending their Christmas break.

Chipmakers gained as prices for memory chips rose and hopes for a cut in capacity grew. Dresdner Kleinwort Wasserstein reported that spot prices for SDRam 128Mb chips rose 7.5 per cent on Wednesday to breach the $2 mark for the first time in recent months.

Meanwhile, South Korea's Hynix said a deal with Micron of the US was likely next month. The news helped Infineon move up as much as 3.5 per cent in early trade but the shares fell back to close 1.4 per cent higher at €22.75. STMicroelectronics rose 2.5 per cent to €36.14.

In software, SAP was up 1.2 per cent to €146.55 and Dassault Systemes was up 2.5 per cent to €54.

The smaller German group Intershop Communications, quoted on the Neuer Markt, fell 11 per cent to €1.31 after last Saturday's warning that sales next year would be lower than this year.

Italy's bank group IntesaBCI put on 4.2 per cent to €2.84 after Brazil's Banco Itau offered to buy its Paris-based Banque Sudameris holding, which has stakes in banks throughout Latin America. Bipop Carire rose 2.5 per cent to €1.86 as investors welcomed news, late in the day on Friday, that Banca di Roma planned to take over the group. Roma slid 1.2 per cent to €2.24.

The Spanish banks took last weekend's record- breaking sovereign debt default, and the prospect of a devaluation in Argentina, in their stride. Santander Central Hispano jumped 4.4 per cent to €9.40 while Banco Bilbao Vizcaya gained 2.7 per cent to €13.97.

Renault led a broadly stronger motor sector after the French carmaker said it expected to meet its cost- cutting goals in spite of missing a target for procurement savings in 2001. Renault shares jumped 3.9 per cent to €39.30.