A volatile session left Frankfurt 94.19 better at 7,490.32 on the Xetra DAX index after trading within a range that stretched from 7,342.65 to 7,596.90.

Weak on Tuesday, chemicals rallied with BASF gaining €3 to €43.99 after it unveiled plans to expand Internet connections and made positive comments about its drugs operations.

The FTSE Eurobloc 100 index added 0.3 per cent at 1,757.28 and the FTSE Eurotop 1000 index improved 1.4 per cent at 3,613.64. The FTSE Eurotop 300 index rose 1.4 per cent to 1,543.48.

The better sentiment washed right across the sector. Bayer added €1.35 at €42.60, Degussa Huels €1.10 at €33.50 and Henkel €2.65 at €56.90. Electronics group Epcos, which was floated at €31 last October and entered the Xetra DAX on Monday, remained a choppy market, sliding €7 to €144. Full-year results statements brought little cheer at Deutsche Bank and insurance leader Allianz. The former hardened 38 cents at €81.38 while Allianz shed €2 to €369. Deutsche Telekom ended €1 better at €85 after touching a session high of €89 following news of its Internet alliance with Lagardere of France.

Paris fell 46.36 to 6,046.27 on the CAC-40 index after a savage shakeout for tech-related stocks. Lagardere fell almost 6 per cent following news of its German alliance. The shares raced ahead to €108 before sliding back to €90.55 at the close, off €5.55.

Canal Plus and STMicroelectronics both fell more than 6 per cent. The pay TV leader fell €16.60 to €250.50 and STMicroelectronics came off €14 at €194. Cap Gemini lost €8 at €232.

Amsterdam ended 8.38 higher at 660.72 on the AEX index with media stocks back in demand and Unilever finding ready buyers. Unilever rose €1.93 or 4.5 per cent to €45.33 on plans for an Internet joint venture.

Milan called a halt to the sharp slide seen on Tuesday, closing 1.2 per cent higher as investors shunned telecoms and media stocks in favour of cyclicals and some financials. The Mibtel index finished 382 higher at 31,944.