Frankfurt DAX: 3359.46 (+29.70)

German shares continued to trade just short of record highs in after hours trading, buoyed by the strong opening on Wall Street and the continued strength of the dollar against the deutschmark. Motor stocks were the main beneficiaries of the dollar strength with BMW, Daimler and Volkswagen all well ahead. At the close of after hours trading, the IBIS DAX was on 3370.09, up 11 points from the official close.

Paris CAC-40: 2617.55 (+38.55)

French stocks closed sharply higher in a rally triggered by three days of gains on Wall Street. The CAC closed off its session high after New York also came off its best level, but brokers said the market was underpinned by expectations that the franc's strength left scope for a French interest rate cut.

Milan Mibtel: 12078 (+158)

Italian shares closed higher reflecting relief that a compromise solution appeared to have been reached over the Albanian crisis which had threatened to bring down the Prodi government.