Frankfurt DAX: 2549.29 (+3.17)

The German bourse ended slightly higher after a session undermined by the faltering dollar and dominated by selective buys ahead of a key DAX options and futures expiry later this week.

Dealers said the relief following Russian President Boris Yeltsin's showing in weekend elections, which buoyed the market on Monday, had faded and that technical issues were dominant.

Paris CAC-40: 2107.94 (-5.10)

French stocks finished off their lows but still in negative territory, with investor confidence undermined by weakness in the franc and dollar. "Wall Street failed to provide any inspiration but there was some short covering after the US bond market opened firmer than expected," said one trader.

Milan Mibtel: 10674 (+166)

Italian shares surged in afternoon trading, adding to earlier gains to close sharply firmer on optimism that falling inflation figures, due later this week, will prompt an interest rate cut in Italy.