Early enthusiasm, sparked by Wall Street's overnight record and the latest cut for European interest rates, faded and Frankfurt ended well short of its peak. At the close of trading, the Xetra DAX index was 66.16 higher at 5,133.92. The best of the day was 5,178.89.
Dresdner Bank rose €1.08 to €38.53 on a trading statement that forecast a return to earnings growth plus possible acquisitions in the current 12 months.
Retailers were the main beneficiaries of the reduction in interest rates. Karstadt jumped €34.50 or 10 per cent to €376 as investors anticipated stronger consumer spending. Metro gained €1.05 to €63.10.
Paris failed to hold early gains sparked by the European Central Bank's surprise interest rate cut on Thursday, after Wall Street's weaker opening and fears about an extension of the Kosovo conflict turned sentiment around.
The CAC-40 settled 32.44 or 0.8 per cent higher to 4,363.14, after reaching an all-time high of 4,416 in early trading.
Canal Plus, posted a hefty €11.50 gain to €285 on reports it had offered to buy satellite subscribers from Stream, a rival to its Italian operation Telepiu. Telecom and technology issues were also strong, tracking overnight gains on Wall Street. Alcatel added €5.60 to €115.70. STMicro-electronics rose the same amount to €107.60. Cap Gemini was €6.20 higher on €162.20 after news of its $200 million (€185 million) acquisition of US computer services company Beechwood.
Amsterdam ended virtually all square with the AEX index closing at 537.73, a gain of 0.06. ING pushed ahead smartly, rising €1.45 to €53.20 on hopes for acquisitions. But most other leaders in financials were weak. Aegon lost €2.05 at €85.35.
Helsinki ended 2.9 per cent higher, comfortably hitting an all-time high despite some hesitation in late trading. The Hex index rose 199.38 to 6,976.78.
Strong gains in Nokia helped power the market, with shares in the mobile phone company ending €7.30 or 4.9 per cent higher to €157.50.
Food group Raisio fell back from a €9.50 session high to end at €9.15 or 20 cents higher after a Dutch court ruled in its favour in a trademark dispute with Anglo-Dutch Unilever.
Milan turned negative at mid-session on worries that Russia could become involved in Kosovo. The Mibtel index ended 217 or 0.9 per cent lower to 25,080. Olivetti firmed two cents to €2.89 after the company said it had filed the prospectus for its $65 billion (€60 billion) takeover offer for Telecom Italia.
