European stocks closed higher for the first time in three days Wednesday, spurred by merger and acquisition sentiment after Carlsberg and Heineken said they were in talks about making a bid for brewer Scottish & Newcastle, AP reported. Retail and technology sectors also performed strongly. The U.K.'s FTSE 100 Index added 0.1 percent to close at 6,677.7, while France's CAC-40 Index closed 0.8 percent higher at 5,818.8. Germany's DAX Index added 0.3 percent to close at 7,985.4. «All of a sudden the world does not look too bad a place. Onwards and upwards!,» said David Buik at Cantor Index, noting that the renewal of merger and acquisition activity helps investor sentiment. Carlsberg and Heineken's joint statement indicating they are in talks to form a consortium to make an offer for Scottish & Newcastle sent the brewer's shares soaring 18.8 percent. Despite perennial speculation of Carlsberg's interest, Heineken's involvement surprised the market but could make the prospect of an offer more likely by eliminating potential antitrust issues. News of the possible deal, which comes just one week after U.K. brewer SABMiller PLC agreed to combine its U.S operations with those of Molson Coors Brewing, boosted the entire sector. Industry leader InBev closed up 0.6 percent and London's SABMiller gained 2.3 percent. Meanwhile, positive third-quarter results from ASML _ which makes equipment for many of the world's top chip manufacturers used in computers and iPod music players as well as other electronic devices _ boosted technology stocks. ASML, which said sales could rise in the first nine months of 2008, saw its shares rise 8.2 percent. The update followed Intel Corp., the world's No. 1 chipmaker, reporting a 43 percent increase in third-quarter profit. Fellow chipmakers Infineon Technologies' shares rose 2.1 percent and STMicroelectronics' shares gained 0.8 percent. The retail sector also shone as French supermarket group Carrefour recorded a 5.8 percent rise in third-quarter revenue late Tuesday and indicated it was on track to deliver stronger underlying sales growth in 2007. Its shares closed 2.6 percent higher. Similarly, French food company Groupe Danone's shares added 3.3 percent as an optimistic outlook from the French dairy firm for the full year offset disappointment in its third-quarter sales figures.
