Frankfurt Dax: 4,230.42 (+122.02) The IBIS DAX index passed the 4,300 point level just before the end of the post-bourse computer dealings, fuelled by demand for banking sector shares and the high dollar. Early Wall street gains also supported the market which ended up around 3 per cent higher.

Dealers saw dramatic recovery from Monday's drop as signs that the bull run is intact.

DMG recommended a shift into Lufthansa from BA.

Paris CAC-40: 2,921.13 (+47.01) Like the market in Frankfurt, French shares extended gains after Wall street opened firm. The market had been well supported by the dollar and was also higher in a correction to anticipated falls ahead of the corporate tax increases announced on Monday. France's commitment to the EMU also supported the market.

Milan Mibtel: 14,928 (+2.06%) Italian shares surged ahead at the opening driving up the newly merged Telecom Italia but star performer Ambroveneto was well down on profit taking. Shares slipped back a little at the close.