Frankfurt Dax: 5754.46 (-5.57)

German shares rose sharply in after-hours trading with the Xetra Dax closing on 5799.22 after earlier leaping to a new intra-day high of 5810.02.

The rise came despite the comments from Fed chairman Alan Greenspan that the Fed might need to raise rates and the warning that stock prices are difficult to sustain.

Volkswagen shares rose almost 7 per cent after Merrill Lynch raised its rating to a "buy".

Paris CAC-40: 4208.60 (+6.74)

World Cup football was a serious distraction for the Paris market which closed marginally firmer as France Telecom recorded a late gain.

Trading was hit by many absences from dealing desks, especially male dealers.

One equity saleswoman with a US brokerage said that her male colleagues were entertaining a group of Scottish fund managers at the Brazil-Scotland opener to the World Cup.

Milan MIBTEL: 24255 (+87)

The Milan market closed slightly higher, as selective buying in thin volumes reversed early losses.