WHEN OIL PRODUCERS, CARMAKERS AND DRUGMAKERS WILL DOMINATE -- HOPING FOR CONFIRMATION THAT CORPORATE EUROPE IS ON A STRONGER FOOTING THAN THEY HAD ORIGINALLY ANTICIPATED. "CORPORATES SEEM TO BE DOING THE RIGHT THING AND GENERATING PRETTY GOOD RETURNS," SAID STEPHEN DOCHERTY, HEAD OF GLOBAL EQUITIES FOR ABERDEEN ASSET MANAGEMENT. BUT DOCHERTY AND OTHERS POINTED OUT THAT OIL PRICES, NOW HOVERING AROUND RECORD HIGHS, REMAINED A CONCERN FOR INVESTORS WARY THAT SURGING ENERGY COSTS WILL DAMPEN CONSUMPTION AND ERODE CORPORATE PROFITABILITY. OIL FELL SLIGHTLY ON FRIDAY AS INVESTORS CASHED IN AFTER A RECORD-BREAKING RALLY, BUT TENSION OVER IRAN'S NUCLEAR PROGRAMME AND NIGERIA'S SUPPLY OUTAGES FUELLED UPWARD PRESSURE IN THE MARKET. AROUND EUROPE, LONDON'S FTSE 100 GAINED 0.8 PERCENT TO CLOSE AT ITS HIGHEST LEVEL SINCE FEBRUARY 2001. PARIS'S CAC 40 ROSE 0.9 PERCENT, WHILE FRANKFURT'S DAX AND THE SWISS MARKET INDEX BOTH GAINED AROUND 0.5 PERCENT. TAKEOVER ACTIVITY ADDED TO POSITIVE SENTIMENT. ICAP, THE WORLD'S LARGEST INTERBANK BROKER, UNVEILED A LONG-AWAITED DEAL TO BUY FOREIGN EXCHANGE AND COMMODITIES PLATFORM EBS FOR $775 MILLION IN CASH, SENDING ITS SHARES NEARLY 11 PERCENT HIGHER.
