Frankfurt Dax: 2764.09 (+0.25)

Germany's blue-chip DAX index closed fractionally higher as Deutsche Telekom joined the 30-share index the day after its scorching global debut with a weighting of 4.5 per cent. Deutsche Telekom lost ground after Monday's debut, however.

It closed floor trade in Frankfurt at 32.07 marks, 5 per cent down from its opening level of 32.20. The volume of Telckom shares traded was bigger than a normal day's trading in all the DAX 30 shares combined, with over 11 million changing hands in bourse dealings and almost 15 million in computer trade.

Paris CAC-40: 2240.05 (+11.24)

French shares were only marginally up after earlier gaining a little following US housing data. Eurotunnel was down 1.92 percent at 7.65 francs but off its lows after a fire in the Channel Tunnel between France and Britain forced the temporary closure of the rail link.

Milan MIBTEL: 10415 (+110)

Milan shares ended higher helped by the firmer trend on bond markets and on Wall Street.