German shares extended their gains in after-hours trading with the IBIS Dax index pushing ahead to 2394 on the back of gains on Wall Street and gains on the German bond market. The market is drawing strength from an expectation that interest rates will soon be cut by the Bundesbank although the central bank resisted the temptation to do so yesterday.

CAC-40: 1960.06 (-5.95)

Profit taking dragged the Paris market lower after the Bank of France cut key interest rates by a quarter point. The market had risen for five consecutive days and the bout of profit taking was no major surprise. Dealers said that the quarter point rate cut was the minimum that the Bank of France could have done.

Mibtel: 9558 (+214)

Italian shares closed over two per cent higher on the first day of the new account. Signals that the political impasse might be resolved, stronger bond markets, a stronger lira and interest rate cuts all combined to boost the market.