Frankfurt Dax: 2976.71 (-53.97)

German shares regained lost ground after heavy profit-taking had knocked almost 54 points off the Dax in the early floor session. The recovery, which saw the IBIS Dax close on 2995.72, came after comments by the US Federal Reserve chairman, Mr Alan Greenspan, which were interpreted as favourable to equity markets.

Paris CAC-40: 2409.88 (+3.78)

French shares turned positive in the final half hour's trading after Mr Greenspan gave his upbeat assessment of the US economy. The CAC recovered from a session low of 2384.77 to close marginally higher on the day after the Fed chairman provided sufficient reassurance for the markets to push the Dow higher

Milan MIBTEL: 12223 (-111)

Italian shares closed lower across the board on a wave of profit-taking, the only exception being Olivetti which rose sharply on a spate of buying, boosted by the sale of its personal computer business to a consortium of Italian and overseas investors.