Frankfurt DAX: 2773.43 (+39.13)

In Frankfurt, floor trading extended its record breaking rally and closed at a new peak, boosted by the strengthening dollar, which was seen as helping exports.

Computerised deals measured by the IBIS index broke the intraday record set on Tuesday, climbing to 2778.83 points, a gain of 0.4 per cent, per cent, as the dollar climbed decisively over the psychologically important DM 1.50. level.

The dollar got another boost after the Tuesday IBIS close on comments by Bundesbank president, Dr Hans Tietmeyer that the dollar was once again on its way higher and that he always welcomed the dollar being at its correct level.

Paris CAC-40: 2217.19 (-11.94)

In Paris, stocks slipped, 0.6 per cent despite hitting a year's year a year high on Tuesday.

A large state sale of shares in Elf adding added to consolidation pressures.

Milan Mibtel: 10166 (+25)

Milan shares closed firmer, helped by the higher trend in domestic bonds and the lira, while a rise in banking shares also gave support as the deadline for bids for Banco di Napoli drew closer.