Positive corporate announcements, in the absence of any other news, enabled Frankfurt to call a halt to its two-day slide and the Xetra Dax index finished 23.98 higher at 4,705.32.

Turnover on the day was low, however, which tended to exaggerate price movements.

Retailer Metro was a winner, rising DM6 to DM107 as reports of a special news conference on Friday provoked speculation about an IPO or the sale of its Vobis computer retailer.

On a mixed day for banks, Commerzbank rose 88 pfg to DM53.50 at its third quarter net income figures outshone those of its rivals.

Among the chemicals groups, Schering rose DM7.90 to DM195 on nine-month results and details of its plan to buy back DM500 million of its own shares.

Bayer, weak on Tuesday, eased another 4 pfg to DM64.76 inspite of its forecast of higher earnings this year.

Zurich bounced higher as highly speculative stories that Roche and Novartis might be about to merge paved the way for a rebound from Tuesday's losses. The SMI index finished 93.3 higher at 6,657.4.

Amsterdam edged upward as technology stocks prospered on the back of the sector's recent good performance in the US. The AEX index rose 9.54 or 0.9 per cent to 1,052.34.

Milan moved forward with other European markets amid signs of greater optimism in Japan about the prospect of economic recovery.

The Mibtel index finished up 277 or 1.4 per cent at 20,491, reflecting a similar rise in the Mib30 index of blue-chip companies.

Madrid turned back to close flat after a late sell-off sparked by futures prices and the slow opening in New York. The General index finished 1.52 higher at 789.80.

Paris and Brussels were closed for public holidays.