European share indexes closed at 32-month highs on Friday, buoyed by well received results from telecoms company TeliaSonera and food group Danone, and by a rally on Wall Street. U.S. stocks reversed early losses to trade higher by midsession following news of a 2-for-1 stock split for Apple Computer. Heavyweight banking stocks continued their strong recent run, led by a 1.8 percent gain for Societe Generale, which hit a record high as brokers raised targets after the French bank beat profit estimates. The FTSEurofirst 300 index of pan-European blue chips closed 0.9 percent higher at 1,097.4 points. The index finished the week with a gain of about 1.4 percent, its third consecutive weekly rise. "Risk appetite is high, so no wonder equities are hitting new highs, but we still believe that people are underestimating potential negative consequences from a declining cycle," said Jacob de Tusch-Lec, European equity strategist at Merrill Lynch. --More 2259 Local Time 1959 GMT
