German shares ended bourse trade slightly higher and near the day's peak in thin dealings as the market searched for direction after tumbling about 2 per cent last Friday. The index pared some of its gains in post bourse IBIS computer dealings.

Dealers debated whether Friday's drop would lead to further losses or whether support at 2450 would hold and the market would attempt to reach new record highs. Paris CAC 40 2083.74 (-6.68)

French shares closed lower after they turned weaker in the afternoon under the influence of a lower Treasury bond and a mixed Wall Street. The CAC 40 index, which had been sliding for three trading days, managed only briefly to regain the 2,100 level after posting gains during the morning. Milan Mibtel 10504 (+47)

Italian shares ended slightly firmer but off the day's best levels as profit taking set in as investors focused on the easier bond market and Wall Street's move into negative territory trade in early trade.