Frankfurt Dax: 4,068.05 (+118.91) Stronger US markets and calmer Asian ones launched German shares well over the key 4,000 point level last seen a month ago although stocks met with strong resistance around 4,070 points.

An absence of negative domestic news also lent support.

"There isn't anything bad on the local side and the outlook seems good. The problems with Tokyo and other emerging markets are becoming less important," one trader said.

Paris CAC-40: 2,918.48 (+59.29) The Paris stock market rose sharply yesterday, propelled by the dollar's strength and Wall Street's gains.

"The Asian financial crisis has deteriorated but it is under control even if the risk of slower growth is greater," said Mr Bruno Le Chevalier, a market strategist at BZW.

Milan Mibtel: 15,612 (+247) Italian shares rose yesterday, lifted by gains in US stocks after turmoil in Asian markets subsided temporarily.

Gains in Italian stocks were helped by expectations that the Bank of Italy will cut rates soon.