Market Reports - Europe

Frankfurt DAX:

German shares closed firmer but off earlier highs as a lack of buy orders weighed and trade slowed because of the Thanksgiving holiday in the US.

The blue-chip DAX index was carried to a better close by a stronger dollar, which benefits German companies because it tends to make their exports less expensive, and healthier Japanese markets. It was unhurt in earlier trade by small overnight losses on Wall Street on Wednesday.

Overall volumes were moderate to thin due to many market players turning the US holiday into a long weekend.

Dealers said the switch to the new XETRA (Exchange Electronic Trading) order-driven dealing platform, set to replace the all-day computer trading system IBIS, was expected to go smoothly when it goes live today.

Paris CAC-40:

The French stock market gained ground as the firmer dollar and gains in Tokyo supported share prices but trading volume was down due to the Thanksgiving holiday in the US which meant Wall Street was closed.

Trade was dominated by financial stocks Paribas and Cetelem following a buy-out bid.

Cetelem was the top gainer with a 12.2 per cent rise to 753 francs in turnover of Ffr1.3 billion while Paribas, down 3.94 per cent to Ffr427, had the biggest individual turnover with Ffr1.9 billion. Cie Bancaire came third in the volume stakes with Ffr812 million and rose 7.57 per cent to Ffr881. All three were requoted after a two-day suspension during which Paribas announced a buy-out of minorities in the two units.

Milan Mibtel:

Italian shares closed easier in a directionless market with declines by oil giant ENI and banking group San Paolo helping to bear down on the index.

Traders said Wall Street's closure for the Thanksgiving holiday also contributed to the mood of listlessness.

San Paolo closed 2.96 per cent lower at 13,930 lire, dragged lower by an Italian newspaper report, which the bank swiftly denied, that San Paolo has run up large derivatives trading losses.

ENI finished 1.13 per cent down at L9,842, weakened by lower crude prices and by broker downgrades in the oil sector.

New listing Ittierre made a strong debut, closing at L5,400 with more than 10 million shares traded, well above its L4,800 offer price.