Shares in Frankfurt were higher as chemicals groups BASF and Bayer maintained their recent recovery after a weak European-wide second quarter for the sector.
At 5.30 p.m., the Xetra DAX index was 53.10 higher at 7,057.08. The rise also reflected a strong performance in the tech sector amid relief at the better than expected overnight second-quarter figures from Yahoo! in the US.
BASF put on €2 to €44, after Schroder Salomon Smith Barney upgraded the stock to outperform with a steady price target of €52. Bayer rose €1.76 to €43.58.
Paris made modest gains in a market which continued to be dominated by IPO related news. The CAC-40 index was 0.7 per cent higher at 6,536.51.
The good figures from Yahoo! were seen as a helpful sign for the launch next week of Internet company Wanadoo. Parent group France Telecom rose 1.6 per cent to €150, although Internet rival Liberty Surf was 0.3 per cent lower at €30.90.
Vivendi was up 1.5 per cent to €88.55 in the run up to the launch of its utility arm Vivendi Environnement, which starts trading today.
IT company Altran Technologies was suspended and then fell 7.9 per cent to €198 as it announced a €360 million convertible bond issue.
Amsterdam closed up, boosted by chemicals group Azko Nobel and retailer Ahold. The AEX index was 0.8 per cent higher at 686.33.
Azko Nobel rose by almost 5 per cent to €45.75 amid a sector-wide rebound. The chemical sector was the third best performer in the FTSE Eurotop 300 index, rising 3.2 per cent.
Milan edged lower, pausing to consolidate recent gains. The Mibtel index finished 52 easier at 32,728.
Telecoms stocks were lower in line with the sector across Europe. Telecom Italia dropped 2.2 per cent to €11.52 as it prepared to sign a €10 billion credit facility to fund projects, which it has already announced.
Helsinki rose in a broad rally underpinned by forestry and telecom shares. The general index added 1.5 per cent to 16,003.32.
Mobile operator Sonera rose 3 per cent to €52, its highest close since June 28th, buoyed by news that KPN, NTT DoCoMo and Hutchison Whampoa would link up in phone licence auctions.
