A continuing barrage of positive corporate news, particularly in the telecoms and media sectors, drove Milan to a sixth consecutive record close. The Mibtel index closed 903 higher at 30,968, extending its rise since the start of last week to 7.7 per cent.

One Milan broker said the market was being driven by small and private investors pouring money into technology and internet-related stocks. "Demand from retail investors has been crazy," he said. "Everyone is looking for companies with anything that is related to the internet."

Italgas was suspended limit-up after the company said a press conference tomorrow would give details of an Internet project. At the close, Italgas was indicated 16.3 per cent higher at €5.38.

The FTSE Eurobloc 100 index rose 2.1 per cent to 1,443.15 and the FTSE Eurotop 100 index gained 2 per cent to 3,659.52. The FTSE Eurotop 300 index ended 2.1 per cent better at 1,571.03.

Frankfurt rose strongly with the Xetra Dax index responding to strong demand for market heavyweights with a 253.56 or 3.5 per cent gain to 7,549.88.

Deutsche Telekom was the day's trail-blazer, adding €7.60 or 9.4 per cent to €88.20 in heavy trading volume amid renewed talk of imminent corporate activity. Among tech-related stocks, Siemens jumped €8 at €171 and software leader SAP gained 41.70 to 870.10.

Paris surged to a new all-time high, although about 100 points below its intra-day peak. The CAC-40 index gained 1.5 per cent or 94.08 points to 6,297.66.

Telecoms and technology led the rally. Cap Gemini was up €13.60 or 5.8 per cent to €249.10, and Vivendi, up €6 to €125, a rise of 5 per cent. Cap Gemini announced an alliance with the Canadian online auction and e-commerce company Bid.com.

Helsinki ended at an all-time high of 16,318.84 on the Hex index, a gain of 246.56, with Nokia above €200 for the first time. It closed at a record €200.95, €3.35 higher or 1.7 per cent, helped by the Dow and Nasdaq which rose after benign US employment figures.

Amsterdam notched up a record high with the AEX index adding 14.43 at 666.85. Telecoms leader KPN, a firm market lately on acquisition hopes, continued to charge higher, gaining a further €6.80 or 5.7 per cent at €126.30.