Frankfurt Dax: 3062.29 (+27.24)

German shares were lifted to new records on the back of the dollar's ongoing strength against the mark, but the rally was tempered by caution before a slew of key international economic events. Dealers warned that the gains were achieved on relatively thin volumes, mainly led by dollar sensitive firms like Daimler Benz and Siemens.

Pans CAC-40: 2508.55 (-8.01)

The Paris Bourse suffered a moderate loss on profit taking, which analysts called normal following the market's rise to record highs last week. Since the start of the year, the market has gained a hefty 8 per cent, and is up by 45 per cent since October 27th, 1995, which marked the low point in recent years.

Numerous operators said a consolidation with a decline of 50 to 100 points in the CAC-40 indicator would produce a sounder market.

Milan MIBTEL: 12289 (-123)

Italian shares closed easier, weighed down by the debate over whether or not Italy will make the first wave of countries into EMU.