Frankfurt Dax: 4223.43 (+53.81)

German shares made further gains in electronic after-hours trading as the market tracked movements on Wall Street. The German market was given a boost from the dollar, which traded solidly above 1.85 D-marks. The IBIS Dax, which reflects after-hours trading, was on 4236 at the close and dealers believe that the prospects for a return to the market's high are promising.

Paris CAC-40:2979.27 (+43.11)

French shares closed near their highs as investors bet that the Bundesbank will hold rates steady at today's meeting. The market was also lifted by the resumed strength on Wall Street and the rise of the dollar. The oil sector continued to benefit from the reaction to Elf's oil find offshore Angola.

Milan MIBTEL: 14505 (+213)

The Milan market closed 1.4 per cent higher as investors were reassured by the steady tone on Wall Street. Trading volumes were light but solid demand drove up blue-chips like Fiat, Pirelli and Olivetti by 3 per cent.