The German stock market hit a record high but, even here, operators found little to get excited about.

Dealers said the outlook for German interest rate cuts looked better after comments by Bundesbank chief economist Mr Otmar Issing, but this had failed to give the market much of a boost.

European markets were unsettled on Wednesday by news of strong growth in German M3 money supply. The Bundesbank uses M3 as its main inflation indicator when setting interest rates.

CAC-40: 1976.89 (+7.10)

French shares ended modestly higher yesterday, buoyed by demand for a handful of blue chips, including luxury goods group LVMH whose 1995 results pleased the market.

Mibtel: 9456 (-48)

Italian shares ended slightly lower yesterday losing early gains as Wall Street turned mixed in early trading, but underlying support came from the lira and domestic bonds and good initial March inflation numbers.