LONDON -- On Thursday, London market makers indicated they were still bullish despite the fall and, indeed, on Friday morning the FTSE 100 began with a quick 48-point rise. It pushed even further ahead to stand 135.6 points higher at 6730.2.

The

Nasdaq

was in fine health overnight and this underpinned technology stocks.

Phonelink

gained 11p to 125 ($1.96) after announcing a strategic agreement with

Egg

, the online subsidiary of insurer

Prudential plc

.

Baltimore Technologies

was top of the tech shares this morning, 280p higher to 84.00 pounds. Number two on the list was

NetBenefit

, which rose 137p to 14.00 pounds following a very bullish interim trading statement.

Colt Telecom

(COLTY)

gained 125p to 32.96 pounds and

Geo Interactive Media

weighed in with a gain of 115p to 19.65 pounds.

Arm Holdings

(ARMHY)

was up 161p to 37.50 pounds. The

Techmark

index of leading technology stocks was up 37.1 points to 4549.1.

In biotech stocks,

Oxford Glycoscience

was up 57p to 18.87 and

Celltech

rose 62p to 12.50 pounds. However,

Cambridge Antibody

was strangely subdued and 2.5p cheaper to 25.22 pounds.

Games publisher

Eidos

(EIDSY)

, of Tomb Raider fame, slumped 291p, or 48.1%, to 314 after the company warned of a marked deterioration across all its major territories. Eidos also confirmed rumors that it has sold its stake in Norway's

Opticom

for 94 million pounds.

Courtaulds Textiles

rose 14p to 142.5 following an increased recommended 145p per-hare cash offer from

Sara Lee Corporation

(SLE)

, valuing Courtaulds at 150.5 million pounds.

Back in the Old Economy stocks, the banks made good progress under the lead of

Halifax

, which was up 25.5p to 699.5.

Abbey National

rose 12.5p to 785 and

Barclays

(BCS) - Get Report

moved 37p higher to 16.00 pounds.

Media stocks were mixed.

Pearson

was 64p higher to 23.00 pounds and

EMAP

gained 30p to 13.75 pounds, but

Reuters

(RTRSY)

slipped 29p to 13.48 pounds.

Europe's Continental bourses were higher, as Wall Street's strong performance Thursday helped investors find their courage. The

Xetra Dax

in Frankfurt was up 153.30 to 7848.08 and the

CAC 40

in Paris improved 39.53 to 6307.84.

German technology shares rebounded solidly from losses earlier in the week, with

Epcos

(EPC) - Get Report

up 12.28 euros to 134.78. ($130.92) and

Infineon

(IFX)

climbing 1.40 euros to 63.10.

Rumors that the merging utilities

Veba

(VEB)

and

Viag

were considering a bid for

Suez Lyonnaise

helped push Veba shares up 3.01 euros to 51.21 and Viag 1.04 euros higher to 20.24.

Telcos were mixed, with

Telefonica

(TEF) - Get Report

up 0.11 euro to 28.16,

Deutsche Telekom

(DT) - Get Report

down 0.02 euro to 84.98 and

France Telecom

(FTE)

up 0.60 euro to 183.60.