Paris Cac 40 2,120 (+18.85)

French stocks closed higher yesterday after the bourse got an early boost from an unexpected rebound on the US stock market on Friday. But the French market ended off its session highs after Wall Street's mixed opening.

"The market had been oversold on Friday," when it closed down 1.46 per cent, a trader said. "It caught up today."

The blue chip CAC 40 index finished up 18.85 points, or 0.90 per cent, at 2,120.84, while the CAC-40 futures contract closed up 15 points at 2,102.

Frankfurt- Dax 2560.95 (+24.92)

German shares gained ground, boosted by a stronger dollar. Dealers said volumes were thin and attention remained focused on the US market.

Milan Mibtel 10529 (+26)

Italian shares finished slightly higher in thin trading volumes. Investors are waiting for the government to unveil plans for a supplementary budget.