Markets follow Dow upwards

Frankfurt DAX: 3233.21 (+49.00)

The DAX closed up 49 points at 3233.21. Dealers said the continental European markets were reacting not to Tuesday's Dow but its Monday performance when it jumped 1.1 per cent to 7008.20 due to a strong US economy, a firm dollar and low inflation.

Paris CAC-40: 2607.72 (+39.87)

French shares closed sharply higher fuelled by the gains on Wall Street and a solid dollar, but the market closed below its high for the day and well below its February 18th all-time high.

There was some activity in insurance stocks with Axa denying reports that it planning to sell Equity & Law and AGF sharply higher on speculation on a possible bid from Allianz.

Milan Mibtel: 12324 (+71)

Italian shares wiped out a large portion of their early gains in the wake of a fall in bond futures prices.

The market showed little reaction to the expected government victory in a confidence vote on the last chunk of the 1997 budget.