Markets reversed direction and made gains yesterday afternoon ahead of the European interest rate decision. Germany's Xetra Dax index was the strongest performer on a day when the main focus was on individual company results.

Motor stocks were given a much needed shot in the arm. Weak statements from Renault and Fiat have hit sentiment in recent weeks but third-quarter profits' resilience from BMW helped restore investor morale.

Group earnings were above broker forecasts and as a bonus BMW stuck firmly to its return on sales targets for the full year. The shares jumped 5.6 per cent to €36.77. Volkswagen shared in the excitement, adding 1.9 per cent at €45.39. Porsche rose 5.1 per cent to €351 after HSBC stepped up its target price to €395.

Foods group Numico plunged to €23.90 following its second profits warning in a month. The buyers came back tentatively later in the session but the shares were never in any danger of being pushed out of last place in the FTSE 300 Eurotop index performance tables.

The news hit rival food producers. Danone fell 0.8 per cent to €131.80 and Nestle lost 1 per cent at SFr344.50. Numico closed off 12.9 per cent at €25.17 in 6.7 million shares traded.

Accor, Europe's biggest hotels group, fell 2.9 per cent to €35.36 after posting third-quarter results. Turnover was up 6.6 per cent and the company maintained its full-year forecasts, having revised them downwards a week after the September attacks in the US. But the shares have rallied considerably since their trough on September 21st.

Telia, the Nordic region's biggest telecoms operator, posted a rise in profits for the third quarter but warned that "overall uncertainty in the global economy may have a decelerating effect in the short term". Its Finnish rival Sonera announced another move to cut its debts as its shares slipped four cents to €6.16.