Frankfurt Dax: 4249.69 (+53.32)

German shares drifted 1 per cent lower yesterday, the final trading day of the year. They were hit by modest profit taking as some investors sought to lock in gains after a year which saw the Dax index climb 47 per cent.

Most analysts expect the Dax to advance from current levels in 1998, but a repeat of this year dramatic gains is not expected.

Paris CAC-40: 2,975 (+36.01)

Shares rose on the back of Wall Street strength with volumes sustained by people squaring the books ahead of the year's final session, today.

However, apart from investors taking positions on the unwinding of retailer Promode's takeover battle with Casino, brokers said the session was uneventful.

Milan Mibtel: 16,733 (up 55)

Italian stocks ran out of steam at the close yesterday, ending with only modest gains after sprinting up to new record highs at the opening.

Dealers said the market was consolidating after Monday's rally, with expectations of further Italian interest rate cuts and inflows of liquidity in the new year.