Frankfurt DAX: 5953.16 (+49.06)

German shares held their gains in afternoon trading, but volume was light mainly due to the impact of the Independence Day holiday in the United States and a dearth of corporate news.

Traders expected further gains next week although some believe that the market will do no better than move sideways.

Volkswagen held its gains despite the denial by Volvo of merger talks.

Better-than-expected German jobless data supported the deutschmark. The number of people out of work fell by more than 120,000 in June from the month before. Analysts had expected a drop of around 100,000.

The electronic XETRA DAX index, which measures all-day trade, was up 56 points or 0.95 per cent at 5,961.0.

Paris CAC-40: 4304.38 (+52.29)

The Paris market closed within a whisker of an all-time trading high as investors expressed optimism about reports of Japanese tax cuts.

Trade was thin and direction lacking because of the closure of the US markets but dealers are anticipating a move into record territory during the next few weeks.

Milan Mibtel: 23876 (+254)

The Milan market also closed near a record high but trading was very thin because of the US market closure and also due to interest in the France-Italy World Cup quarter-final in Paris.

New York markets were closed for the us independence day holiday