LONDON -- A spectacular performance by technology and telecom stocks gave European markets plenty of reasons to be cheerful.

In the U.K., the

FTSE 100

index reached highs not seen for eight months, closing up 122 points, or 1.8% at 6,795, while the indubitable star of the show, the

Techmark 100

, finished up 140 points, or 3.4%, at 4,260.

Vodafone

(VOD) - Get Report

did a lot of the hard work for the FTSE. As worries over third-generation mobile license costs recede -- at least for now -- a raft of investors piled back into this core mobile holding. Vodafone closed up 21.75p, or 7.8%, at 300, accounting for 59 points of the index's gain. Elsewhere,

Energis

(ENGSY)

closed 31p, or 4.9%, to the good at 660, while

Telewest

(TWSTY)

was the main index's biggest riser, closing 11.1% higher at 191p.

Even the much-maligned Internet stocks were buoyant.

QXL

(QXLC)

put on 10.25p, or 17.2%, to 70 and beleagured ISP

Freeserve

(FREE)

, which spent most of the session in and out of positive territory, staged a late surge to end 14p, or 5.2%, to the good at 284.

In the tech stocks,

Parthus Technologies

TST Recommends

(PRTH) - Get Report

closed up 21.5p, or 6.7%, at 342.5, capping a three-day rise of 47%.

Bookham Technology

(BKHM)

ended up 184p, or 4.5%, at

43.19.

Europe's Continental stock markets also finished the week higher. Late in the German session, the

Xetra Dax

in Frankfurt was 135 points, or 1.9%, at 6,814. The

CAC 40

in Paris closed up 189 points, or 2.9%, at 6,814.

Here too the star performers were technology and telecom shares.

Telefonica

(TEF) - Get Report

was up 1.70 euros, or 7.9%, to 23.15 after impressive first-half results that showed revenue rose 24% to 13.3 billion euros ($11.8 billion) and

France Telecom

(FTE)

was up a massive 13.00 euros, or 10.2%, to 141.00

Phone equipment makers

Nokia

(NOK) - Get Report

and

Alcatel

(ALA)

also rode the wave. Nokia was 2.39 euros, or 4.8%, to 52.50 and Alcatel was up 2.30 euros, or 2.5%, to 95.00.