Frankfurt Dax: 5388.90 (+46.05)

German shares closed after-hours trade at a record high, gaining almost 2 per cent. The market was buoyed by the firmer tone on Wall Street and June S&P futures ahead of the Fed meeting on interest rates. There was also relief that President Suharto promised fresh elections. In general, trade was muted ahead of a Thursday holiday.

Paris CAC-40: 3980.84 (+35.53)

French shares closed comfortably ahead in line with other European markets and with volumes boosted by a sudden burst of block trades. Traders believe that the last-minute deals are driven by foreign investors, seeking fiscal havens in connection with dividend payments. Dealers said that rationale behind the block trades is similar to "bed and breakfast" dealing on the Dublin and London markets.

Milan MIBTEL: 23830 (+677)

The Milan market was almost 3 per cent higher, boosted by the Wall Street gains. Bank stocks also gave the market a boost.