Dax 2459.26 (-10.88)

German shares took a breather yesterday, after the recent spate of highs, but dealers said the market was still on course for more gains.

Dealers were reported to be confused about the impact of the Bundesbank's decision to switch to a lower fixed-rate repo, while leaving official rates unchanged.

Opposition to the tax cuts included in the Governments 50-point action plan to boost growth and create jobs, unsettled the market, dealers said.

CAC 2024.09 (+3.06)

The Paris market ended higher yesterday for the seventh consecutive session after foreign investors continued to snap up French shares.

Mibtel: 10061 (+138)

Italian stocks ended higher almost across the board as the market welcomed the appointment of Prime Minister-designate Antonio Maccinico, thereby avoiding the spectre of early elections.

Prices were also boosted by the lira which surged to a 12-month high against the mark.