Construction materials giant CRH, however, lost ground to finish at 27.95 for the week after opening at 28.30. McInerney continued to suffer after its share price cratered 14% Tuesday on the back of an 18% fall in its pre-tax interim profit. The stock closed down at 1.30 after losing more than 28% over the week.

European stocks advanced, paced by BMW and BHP Billiton, on speculation the US Federal Reserve will cut interest rates to spur economic growth in the world's biggest economy.

The Dow Jones Stoxx 600 Index added 0.3%, leaving the gauge with a 4% loss for the three months from 1 July, the "rst quarterly drop since the period ended 30 June 2006.

The Stoxx 50 lost 0.1% this week.

The Euro Stoxx 50, a measure for the euro region, increased 0.3%.

"The Fed will be forced to cut rates, and forget about the in"ation story for now, '' said Peter Dixon, global equities economist at Commerzbank. "The relief rally will probably extend well into October.'' The odds the Fed will lower rates by 0.25 percentage point are 86%, futures contracts show.

BMW, the world's largest producer of luxury cars, gained 3.8%. The company makes a quarter of its sales in the US.

Barron's said BMW may rise as much as 20% or more in the second half if the auto manufacturer cuts spending, stimulating expansion of its margins.

Fiat climbed 5%. Italy's largest manufacturer said it has already met 85% of its annual sales target for the Bravo car, a challenger to Volkswagen's Golf. Renault, France's second-biggest car maker, added 1.6%.

BHP, the world's largest mining company, advanced 5.7%. Rio Tinto, the third-biggest, climbed 4.4%. The declining value of the dollar and the surging cost of oil boosted the appeal of gold as an alternative investment.

Alcatel-Lucent rallied 12%.

Chief executive Patricia Russo has been given until 30 October to present an emergency restructuring plan to the board, the Financial Times reported, citing an unidenti"ed person close to the company's board.

Deutsche Bank fell 1.6%.

Reuters reported the bank may have to write down as much as 1.7bn in leveraged loan commitments in the third quarter. The company's chief executive "has been very public that the bank will take its pain", Merrill Lynch analysts wrote in a note to clients. They reduced their thirdquarter adjusted earnings-pershare estimate by 15%.

Northern Rock, the UK mortgage lender that was bailed out by the Bank of England, sank 7.8%.

The Financial Times reported the company borrowed another �5bn from the Bank of England. The bank last week distributed almost �40m in dividends to holders of preference shares two days before the bank cancelled its interim dividend to ordinary shareholders, the FT said.

Merck, Europe's largest biotechnology company, slumped 14%. Merck may lose customers as competition from rival Chisso intensifies. Bloomberg