European markets mostly moved ahead in line with Wall Street, although trading was light and many bourses were closed for the Ascension Day holiday.

The FTSE Eurobloc 100 index, which covers leading companies in the euro zone, closed 4.62, or 0.4 per cent, higher at 1,070.96. The FTSE Eurotop 100, covering countries inside and outside the zone, rose 32.77, or 1.1 per cent, to 3,010.65, while the broader FTSE Eurotop 300 settled 13.31, or 1 per cent, lower at 1,307.88.

Paris climbed steadily on a day of low volumes, buoyed by the release of US economic data seen as containing little evidence of an impending rise in inflation. The CAC-40 index, up about 1.1 per cent half an hour before Wall Street opened, closed 61.09, or 1.4 per cent, higher at 4,415.88.

STMicroelectronics continued its powerful run, ending 10.50, or 10.1 per cent, up at 114.20 after Goldman Sachs raised its profits forecasts for this year and next.

STMicro has gained 213.4 per cent since October 1st last year and has also outperformed the CAC-40 by 115.6 per cent.

Madrid closed higher as Telefonica, the stock with the highest market capitalisation, powered to an all-time high. The general index ended 7.49, or 0.8 per cent, up at 909.68. The rise confirmed Madrid's status as one of the better performers among the main European markets this year.

Telefonica rose 65 cents, or 1.4 per cent, to €47 on a day of mostly quiet trading.

Milan had a lacklustre day, with an early feeble rally surviving in light trade. The Mibtel all-share index closed up 167 at 23,386, and the Mib 30 lifted 254 to 35,743.

Olivetti rose 6.5 cents to 3.26 while its pursuer, Telecom Italia, was heavily traded and closed 14.8 cents higher at €9.99.