Frankfurt DAX: 4307.91 (+22.97)

European shares looked anxiously toward Wall Street for a lead after they opened mostly weaker but then turned positive with merger mania in the drugs stocks providing the impetus.

In Frankfurt, Deutsche Bank, came under pressure on market worries about the extent to which German banks will take a knock from their exposure to Asia.

Paris CAC-40: 3008.34 (+21.39)

French shares rose for the sixth consecutive session, driven by the strength of the dollar and bid fever in the pharmaceutical sector after the announcement of the planned SmithKline Beechman/ American Home Products merger.

The market faltered in the afternoon session after an uneven performance on Wall Street and nervousness about IBM's fourth-quarter results.

Milan Mibtel: 18485 (+211)

Italian stocks closed near the day's highs, lifted by gains in the industrial shares that have under-performed the market's recent rally.