German shares edged slightly higher yesterday as traders caught their breath after several days of gains.

Shares felt little impact after the Federal Labour Office reported that unemployment fell by 5,000 to 3.92 million people. A number of analysts expect German unemployment to remain high through out next year.

Paris CAC-40 199.934 (-13.85)

French shares finished lower yesterday, pressured by falling bond prices and weakness in the French franc. Sentiment on the economy was gloomy, accentuated by a lack of volume in the market due to holidays.

Milan Mibtel 9715 (-53)

Italian shares closed mostly lower yesterday in a listless market in the grips of mid-summer apathy with brokers citing a complete lack of fresh ideas.

The only feature in the market was the future of state telecoms holding company, Stet, which is the subject of a meeting under way in Rome chaired by the prime minister, Mr Romano Prodi.