German shares retreated from their intra-day highs to post a modest gain in electronic trading as traders looked forward to a Thursday session likely to focus again on Daimler-Benz AG, which is in merger talks with Chrysler Corp of the United States.

The DAX-30 index closed at 5229.80, down 2.23 points, or 0.04 per cent.

In later screen-based trade, the Xetra DAX index ended at 5264.62, up 38.42 points, or 0.74 per cent.

Paris CAC-40: 3947.45 (+2.54)

Lively interest in the Daimler-Chrysler merger talks helped buoy French share prices at the close, brokers said. The CAC-40 index closed at 3947.45, up 2.54 points, or 0.06 per cent.

Milan Mibtel: 23736 (-90)

The Milan bourse closed down after wiping out early afternoon gains as Wall Street turned lower on renewed worries about interest rates. The All Share Mibtel index closed at 23736, down 90 points, or 0.38 per cent.