German shares ended trade higher after a lacklustre day's session, lacking serious impetus because of the US Independence Day holiday.

"We usually follow the US markets, the dollar and German bonds, but, with Wall Street closed, we are chasing every little indicator and rumour. There's been hardly anything concrete to go on all day", said one trader.

CAC-40: 2126.81 (+12.83)

French shares closed higher in a muted reaction to a small cut in the Bank of France's intervention rate to 3.55 per cent from 3.60 per cent. Although the market rallied briefly, it closed off its highs.

Mibtel: 10553 (+82)

Italian shares extended early gains in the wake of news of Moody's upgrading of Italy's sovereign debt rating, but ended just off session highs with the market awaiting today's data on US jobs for June and the official consumer price index.