Frankfurt DAX: 4,602.65 (+20.25) German shares pared gains in late afternoon trade, dampened by a retreat on Wall Street and dull Asian trade. The Xetra DAX, which measures all-day electronic trading, closed 1.95 points higher at 4,583.03.

Paris CAC-40: 3,262.5 (+11.87) French shares finished slightly higher as gains in the financial sector helped the market to perk up after two days spent consolidating recent gains.

Insurer Axa-UAP was the top gainer on rumours of a sale of its DLJ unit but it denied them.

Milan Mibtel: 19,299 (-229) Italian shares fell, as investors preferred to close positions ahead of the weekend. "The market is falling for several reasons - options expired, the weekend and concerns about the Iraqi crisis," a dealer said.