German shares rebounded yesterday, with the DAX gaining more than 1 per cent in bourse trade as Wall Street's recovery on Tuesday calmed fears of a continued rout in US stocks. The market held steady in late-afternoon computer trading, with sentiment bolstered by a higher opening on Wall Street.

CAC-40 1,995.47 (+5.96)

French stocks bounced back from Tuesday's drop, lifted by Wall Street and strength in US and European bond markets. But by mid-afternoon stocks had slipped back from their one percent gains. Dealers in Paris said the market was still firmly focused on developments in US stock markets and volatility on Wall Street was likely to keep European bourses on tenterhooks.

Mibtel 9,822 (+111)

Italian stocks recovered to close higher yesterday after two days of heavy losses encouraged by the recovery on Wall Street and supported by the firmer trend to bonds but investor sentiment remains nervous.