Frankfurt Dax: 2391.12 (+8.51)

German shares closed over one percentage point higher in late trading, buoyed by improved German bunds, a strong opening on Wall Street and a stronger dollar. The IBIS Dax - which reflects after hours deals - closed up 28.58 points, or 1.2 per cent, at 2401.59. The move above the 2,400 level is seen as psychologically important.

Paris CAC-40: 1936.90 (+4.54)

French shares closed slightly higher in moderately active business, tracking a recovery in bonds and helped by regained firmness on Wall Street. The main corporate action took place largely outside the bourse, with the government saying it would like aircraft makers Aerospatiale and Dassault to merge and a change of chairman at electronics group Thomson ahead of privatisation.

Milan Mibtel: 9432 (+113)

Italian shares ended sharply higher after five consecutive sessions of losses, rallying on good news from January Italian inflation figures which also boosted bonds, futures and the lira.