Dax 2443.72 (+20.65)

German shares closed at another record high with strong buying interest in blue chip stocks and going hopes for a cut in interest rates, as well as firm bond markets. Dealers, however, are now expecting a dip in the market even though prices continued to rise in after hours trading. Given the extent of the rise in the market since the start of the year, profit taking at some stage seems inevitable.

CAC-40 1950.19 (+4.22)

The Paris market closed slightly higher but well below the day's high on disappointment that the Bank of France had left its intervention rates unchanged. Although other central banks cut rates, the Bank of France is facing temporary franc weakness on fears of further labour unrest following a call by the Communist run union CGT.

Mibtel 9736 (-61)

Italian shares closed mostly lower, hit by worse than expected wage inflation figures and continuing political uncertainty.