Sentiment was finely poised in Frankfurt as investors cast about for direction. In subdued volumes, the Xetra DAX index ended up 9.31 at 7,798.62.
DaimlerChrysler hardened 85 cents at €68.90 amid widespread reports that the motor giant was poised to form an Asian alliance, possibly taking a controlling minority stake in Mitsubishi Motors.
BMW was also firm ahead of today's top-level meeting with the British government to discuss the restructuring at Rover. The shares gained €1.35 at €34.45 to extend their rally over the past eight sessions to 31 per cent.
Techs were mixed. Siemens lost €11.70 at €158.30. With the €4.9 billion placing in Vodafone AirTouch tying up institutional funds in the telecoms sector, Deutsche Telekom came off €2.19 at €86.80.
The FTSE Eurobloc 100 index rose 4.82 to 1,472.17 and the FTSE Eurotop 100 put on 19.88 to 3,840.38. The FTSE Eurotop 300 index was 7.89 higher at 1,633.69.
Paris was in positive territory in the morning but turned down in the afternoon, closing 41.58 lower at 6,279.29 on the CAC-40 index.
Media and tech stocks were the main weakness in spite of the Nasdaq opening higher. Heavyweight stock France Telecom lost €7.30 to €178, hurt by disappointment that the prime minister did not mention a third share offering. Vivendi lost €5.50 to €119 and STMicroelectronics lost €4.80 to €202.50, despite being made a strong buy by CSFB.
Biggest loser was Canal Plus, down 6.4 per cent or €17 to €250. Helsinki was helped upwards by Nokia, which rose 6.6 per cent in a rally inspired by relief that the US interest rate rise was only a quarter of a point, not a half. The shares added €13.65 to €219.50. The Hex general index closed 520.41 up at 16,872.63.
Amsterdam pushed 6.75 higher at 679.35 on the AEX index after a solid session for financials.
Milan lost 1.9 per cent as the weak start on Wall Street added to the gloom over the market as recent strong performers such as Enel fell prey to profit-taking. The stock closed 16 cents lower at €4.80. The Mibtel index lost 629 to 32,156.
