Frankfurt Dax: 3677.43 (+12.42)

In Frankfurt, floor trade ended with modest gains but traders said jitters about European monetary union were still a factor and prices were just a trace softer on the computerised IBIS index by mid afternoon.

Dealers said next week's DAX options expiry deadline was braking market gains. Widespread uncertainty about monetary union and German political situation persists.

Paris CAC-40: 2,696.19 (+32.01)

Paris was the best performer of the day, with bonds and stocks moving ahead as European Union policymakers voiced optimism that differences over a budget stability pact for countries inside monetary union could be resolved, in time for an EU summit in Amsterdam next week.

Milan MIBTEL: 12,213 (+79)

Italian shares closed mostly firmer as optimism grew that agreement could be reached on the Stability Pact but the market still lagged well behind bond futures which finished well up.