Frankfurt rose to a record high with the Xetra DAX index gaining 60.79 at 6,187.99.

Preussag remained a strong market, adding a further €2.60 to €52.50 following Monday's disclosure by the leisure and industrial group that it was actively seeking fresh acquisitions.

The day's techs excitements centred on Deutsche Telekom, which advanced €1.75 to €58.75 on news of a services agreement with Unisys of the US.

Siemens rose €2.95 to €115.85, but SAP ran into keen profit-taking, losing €31.40 at €565. Among financials, insurers bounced. Allianz gained €1.40 at €289.40 and Munich Re €4.45 at €204.70.

Amsterdam ended in the middle of its day's trading range with the AEX index up 1.35 to 625.64. Chemicals helped underpin the better tone with DSM up €2.95 or 8.2 per cent at €39.05 and Akzo Nobel 55 cents ahead at €47.05. Royal Dutch added €1.12 at €57.82.

Telecoms group KNPQwest jumped €10.70 or 23.5 per cent to to a new high for the year of €56.20 after an upbeat trading statement. ASM Lithography responded to positive broker comment with a gain of €3.25 at €98.40.

Paris forged ahead to claim its 34th record close of the year. France Telecom continued its convalescence after last week's disappointment over E-Plus. By the close of trading France Telecom was €4.10 or 3.6 per cent higher at €116.50, slightly down on its day's high of €117.

Carrefour rose strongly as strong sales for the start of the Christmas season in the US and merger speculation in Britain drew attention to the sector. It closed up €4.80 at €169.90. STMicrelectonics was less successful at holding its gains. At one stage up over 3 per cent, after Goldman Sachs raised its target by 50 per cent, the share finished almost flat at €135.30.

Helsinki was dragged lower by heavyweights Nokia and Sonera. The HEX general index fell 96.70 or 0.75 per cent to close at 12,715.89. Nokia succumbed to a mild bout of profit-taking ahead of the year end, falling 45 cents to €162.20. Sonera was punished more severely. Shares lost €3.28 or 6 per cent to €48.02.

Madrid nudged higher the Ibex-35 advanced 14.29 to 11,480.1.

Milan extended its foray into record territory, helped by gains in the financial sector which had been slow to join in the recent rally. The Mibtel index finished 236 higher at 26,789.

Among the banks, Banca Fideuram gained 5.5 per cent to €7.92, Bipop put on 3.5 per cent to €60.40, Banca di Roma gained 1.9 per cent to €1.31 and Sanpaolo IMI rose 1 per cent to €13.70. Fiat gained 1.8 per cent to €30.65 on a report that the government was considering incentives to boost purchases of environmentally friendly cars.