DAX: 2,588.04 (+19.34)

The German IBIS DAX share index ended the day just shy of record-high levels, boosted by the ongoing strength of the dollar, a calming of inflationary fears in the US and a firm start on Wall Street.

The gains came as the US market shrugged off a 0.3 per cent rise in US producer prices in August.

CAC-40 2,065.37 (+27.31)

French stocks finished sharply up, with a shove from bank stocks after strong first-half results, healthy oil share performance and a tug from rising bonds in the wake of weaker-than-expected US economic inflation data.

Volume was a healthy 5.42 billion francs.

Mibtel: 9,438 (+35)

Italian shares closed slightly higher helped by Wall Street's firm opening on lower than expected US PPI data, but trading remained thin and technical, traders said.