Frankfurt Dax: 2423.07 (+38.60)

German shares rebounded strongly as rate cut hopes, the firm dollar and Daimler Benz's recovery lifted the Dax index to an all time high. The market extended its gains in post bourse electronic dealings with the IBIS Dax closing the late afternoon session at 2,436.68 points. The gains came as Daimler, whose announcement of a DM6 billion 1995 loss depressed sentiment on Tuesday, rebounded to close up DM33 at DM799.

Paris CAC-40: 1945.97 (+11.89)

Buoyed by the rally on Wall Street, French shares shook of fears of renewed labour unrest to close up over half a per cent on the day. The market had slipped in earlier trading after the CGT union called for a week of protest, but investors concluded that the threat was not serious.

Milan MIBTEL: 9797 (+29)

The Milan market held on to small gains, shrugging off a fall in Olivetti shares and the political uncertainty.