European stock markets closed higher on Friday, lifted by tech strength and deal news. The German DAX 30 index closed up 0.5 percent at 5,044, the French CAC 40 gained 0.5 percent at 4,600, while the UK's FTSE 100 index closed steady at 5,477, just shy of key resistance at 5,500.
The pan-European Dow Jones STOXX 600 added 0.2 percent at 296.93. The index is up about 7.6 percent from its June 30 close.
"We've seen an outstanding performance by the FTSE, the DAX and the CAC during the month of September, which is notoriously not a very good month," said David Buik of Cantor Index.
Paul Niven, head of strategy at F&C Asset Management, noted that cost-cutting drives at European companies have helped push up profit despite anemic economic growth on the continent and the deadlocked election in Germany.
"The extent of corporate earnings growth despite the domestic situation has been very encouraging for investors, and to some extent explains why investors have put aside concerns over the election so readily," he said.
Takeover speculation continued to swirl around the UK's Aegis, France's Thales and Holland's TNT, while UBS, Kazakh oil and gas producer Nelson Resources, Cablecom, Tesco and Carrefour all confirmed deals.
Semiconductor stocks were sharply higher, getting a boost from a Micron Technology, which reported earnings Thursday and turned a surprise quarterly profit.
ASML closed up 1.4 percent in Dutch trading, while STMicroelectronics gained 3.3 percent and Infineon added 2.5 percent.
Thales shares added 1.8 percent after a report that the long-rumored tie-up between the defense firm and state-owned shipyard DCN is expected within weeks, according to comments French Defense Minister Michele Alliot-Marie made to La Tribune.
Shares of TNT NV added 2.9 percent in Amsterdam after a report in Die Welt said that United Parcel Service Inc is interested in buying European postal-letter delivery companies, citing company Chief Executive Michael Eskew.
The report said UPS is considering buying TNT, citing board member Kurt Kuehn.
London AIM-listed Nelson Resources Ltd sank 8.6 percent after saying it has entered into talks with Russia's Lukoil to be bought for US$2 billion in cash, or C$2.57 a share.
The oil exploration and production company, with operations in the Republic of Kazakhstan, said it would review the proposal. Both parties have agreed to negotiate definitive agreements by Oct. 12.
Earlier this week, Russian gas group Gazprom agreed to buy Russian oil group Sibneft for US$13.1 billion.
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