Renewed investor interest in tech shares sent Frankfurt higher for the third session in a row, lifting the Xetra DAX index 161.46 or 2.1 per cent to 7,872.38.

Business software group SAP jumped €68.80 to €969 and Siemens, which announced deals with Mannesmann and Robert Bosch, gained €15.20 or 9.5 per cent to €175.24. Deutsche Telekom, boosted by press report of impending deals plus an upbeat trading statement from Dutch rival KPN, added €4.80 at €91.30.

The upturn in sentiment for tech sectors washed over on to the Neuer Markt where The FTSE Eurobloc 100 index improved 0.9 per cent to 1,469.32 and the FTSE Eurotop 100 index added 1.1 per cent at 3,820.89. The FTSE Eurotop 300 index gained 1 per cent to 1,624.14. The Neuer Markt index gained 2.6 per cent.

Paris was lifted by solid gains in telecoms and technology shares, although the benchmark CAC-40 index came down from its high of 6,417.63 after the Nasdaq opened negative. It closed at 6,352.51, a rise of 48.23.

Canal Plus was up 6 per cent or €15.30 at €271.30, Equant up €7.30 to €108 and Cap Gemini €8.20 to €284.20. France Telecom rose €5.20 to €192.20 after a report said it was in talks to buy a stake in Germany's Mobilcom. Biggest riser of all was STMicroelectronics, up 9.4 per cent on an impressive dividend and results statement. The shares rose €17.30 at €201.90.

Amsterdam ended little changed with the broad market failing to push higher along with the rest of Europe as a result of weakness of Royal Dutch and Unilever. The former lost 75 cents at €58.50 and Unilever came off €1.19 at €45.71. Top retailer Ahold shed 44 cents at €24.74.

Milan traded against the trend, weighed down by heavyweight Enel, 1.9 per cent lower at €4.46, and some bank stocks which reversed last week's gains. The Mibtel index finished 428 or 1.3 per cent lower at 33,273.