Another bullish day on European bourses again pushed the FTSE Eurobloc 100 into uncharted territory. It rose 1.3 per cent to 1,174.79, while the FTSE Eurotop 100 index rose 1.7 per cent to 3,252.02 and the broader FTSE Eurotop 300 index 1.4 per cent to 1,400.26.

Paris powered to its tenth consecutive closing high. Index heavyweight France Telecom gained €3.31 to set a fresh high at €100, benefiting from fresh talk of consolidation in the telecoms sector.

Frankfurt punched to its best level since July 1998, adding 59.94 at 5,802.36 on the Xetra DAX index. Mannesmann remained hyperactive amid a flurry of rumour and counter-rumour. Speculation in the shares was lifted to fresh heights by a rumour that Mannesmann was set to bid for KPN of the Netherlands. Mannesmann closed at €178.70, a gain of €4.95.

Commerzbank had another unsettled day with this week's results statement sparking negative broker comment. Amsterdam rose 7.62 to 594.80 on the AEX index after another strong session for Philips. The electronics giant rose a further €6.20 to €115.50 for a two-day gain of more than 10 per cent. Right behind Philips at the top of the day's performance charts was telecoms group KPN which jumped €2.73 or 5.3 per cent to €53.94 on a wave of takeover rumours plus good news from the industry in the shape of strong results from BT.

Zurich pressed ahead for a third consecutive session as demand remained undimmed for Novartis and the recently battered Nestle staged a lively rebound. The SMI index finished a session interrupted by technical problems with a gain of 62.0 at 7,421.2.

Milan closed at its high for the day as telecoms and some Internet-related stocks continued to push higher. The Mibtel index finished 191 ahead at 23,790. Italdesign Giugiaro, suspended for much of the morning for excessive gains as the stock made its debut, finished at €10.99, a 57 per cent premium to its offer price.