Paris CAC-40: 2,624.49 (+23.04)

Stocks in Paris made substantial gains yesterday although trading was less active than in previous sessions.

Investors are now waiting to see the formation of the left-wing government to get a fix on the intentions of the new prime minister, Mr Lionel Jospin. Financial circles are particularly concerned about the possibility of communist ministers.

Frankfurt DAX: 3,625.74 (+20.12)

The Frankfurt stock market also gained ground, the DAX index finishing the day at 3,625.74 points, up 0.56 per cent at the official close. Traders said that, as is often the case, the market's gains were due to a strong dollar and a firm bond market.

Milan Mibtel: 12,238 (+80)

Italian shares were buoyed by a firm lira and a steady bond market yesterday. Brokers said that despite market uncertainty over EMU developments, the French socialist's election victory and the German gold row were seen as increasing Italy's chances of taking part in a broad-based currency.