Frankfurt Dax: 3898.95 (+78.82)

German shares ended more than 2 per cent higher as a buoyant Wall Street bolstered earlier gains, inspired by dovish comments by aBundesbank council member, Mr Olaf Sievert. A firmer dollar also helped to boost shares in German export firms. The IBIS DAX index, which represents computer share trading outside bourse hours, ended at 3,995.69.

Paris CAC-40: 2940.55 (+41.93)

French shares finished with a rise of almost 1.5 per cent as operators welcomed benign US inflation statistics which boosted bond markets, traders said. The CAC index rose after August consumer prices showed a 0.2 per cent increase in the index, against an expected rise of 0.3 per cent, and received support from a positive opening on Wall Street.

Milan Mibtel: 14876 (-1)

Italian shares lost ground in late trading as investors squared positions ahead of the monthly expiry on Friday of options and futures contracts but finished the day mostly mixed.