Frankfurt Dax 2562.76 (+14.40)

German blue chip shares, dominated by hopes for an imminent rate cut, held firm in yesterday's bourse trading session before declining slightly with weaker Bunds in late electronic dealing.

Volumes were low as the market was awaiting further clues on the Bundesbank's likely rate decision on Thursday.

Paris CAC-40 1986.21 (+6.69)

French shares finished yesterday firm but with reduced gains after bond markets gave up some of their earlier advances Volume was a thin 2.5 billion francs.

Milan Mibtel 9545 (-113)

Italian shares ended lower yesterday reflecting political worries as the hard left communists said Romano Prodi's government had only a 50 per cent chance of surviving the autumn while bonds and the lira trended downwards.

Business was again very light in holiday trading volumes with little real interest from Italian investors.