Frankfurt DAX: 3854.76 (+34.91)

German shares rose strongly in after-hours electronic trading, boosted by the dollar and the strength of banking shares. Dealers see further gains for the market, although much will depend on the behaviour of Wall Street.

Paris CAC-40: 2909.45 (-34.59)

French government threats to tax company profits put paid to a fresh stock market surge yesterday after high liquidity, a strong dollar and buoyant overseas markets powered share prices to a new record.

While the Socialists have toned down their opposition to privatisations, the party spokesman Mr Francois Hollande fired the first warning shot yesterday when he said the government would target profitable companies if it needed extra revenues.

Milan Mibtel: 13494 (+17)

Italian shares closed well below the highs yesterday after reaching new record levels earlier in the day when a large sell order for Telecom Italia was executed just before the market closed.