Frankfurt Dax: 4335.39 (+32.71)

In Frankfurt, shares were up by 0.8 per cent although uncertainty remained over prospects for German credit as German jobless data argued against any rate hike. Elsewhere in currencies, the dollar climbed one pfennig to 1.8887 deutschmarks as the latest German unemployment figures showed a higher-than-expected increase of 17,000 in July, fanning sentiment that the economic recovery was too fragile to allow the Bundesbank to raise rates.

Paris CAC-40: 3037.09 (+52.99)

French shares closed 1.78 per cent higher after the German data showed a bigger jobless rise than expected. Brokers said that a rise in July German unemployment, showing economic weakness, would keep the Bundesbank from raising interest rates. Some had been predicting a rate rise due to the deutschmark's weakness against the dollar. The change of expectations away from a rate rise boosted the Bunds and French bonds and shares followed.

Milan MIBTEL: 14691 (+367)

Led by the futures market and by the early gains in, Italian shares put on a spurt to post a new high.