Share prices in Paris closed higher as continuing worries over the depth of the financial crisis in Asia and Russia prompted investors to switch cash into less volatile European markets.

Paris

The CAC-40 index closed 62.39 points higher at a record 4,149.37.

One dealer said: "If there's any international fallout from Russia's current problems it's most likely to hit German banks through their exposure in eastern Europe.

"French financials have picked up a bit as a result," he said.

Frankfurt

In Frankfurt the Xetra DAX index of 30 electronically-traded blue chips finished 56.59 points stronger at 5,640.42 points, while the floor DAX earlier closed 30.98 points up at 5,613.76 points.

A Commerzbank trader said: "The flat opening on Wall Street had very little effect on the German market and most shares continued higher, with the exception of one or two stocks hit by profit-taking."

Volkswagen shares were up 18.5 marks from floor close at 1,518.0 prior to the company's shareholders meeting tomorrow and on news that it is to co-operate with Porsche to develop a sports untility vehicle.

BMW shares also rose higher amid speculation whether it or VW will win the bid for Rolls-Royce Motor Cars. BMW stocks went up 10 to 1,890 while Daimler-Benz shed 0.75 to 178.35.