European stock markets extended early gains, after Wall Street and a brief dollar rally cemented the earlier bullish mood.

Stronger-than-expected US third quarter growth figures helped New York stocks climb on expectations of solid profits growth, while few expect the numbers to prevent further rate cuts in the US.

Frankfurt

Share prices in Germany finish stronger in slow trading, with the financial sector benefiting and machinery stocks sagging.

The leading Dax index closed up 121 points at 4,671.

Banks seem to have shrugged off a round of not-too-positive earnings this week, dealers said, adding that the sector had been forewarned and had priced in a gloomy third quarter.

Allianz was the surprise outperformer, but traders said the insurer still has some explaining to do about its purchase of a gasoline and motorway service chain a few weeks ago.

Meanwhile, machinery stocks are still reeling from Wednesday's industry report, which said orders to Germany's machinery industry fell a real 24% in September from a year earlier. MAN was down sharply as a result.

Paris

French stocks pushed higher as investors' moods were buoyed by a rising dollar and by gains today and yesterday on Wall Street.

The leading index, the Cac 40, closed up 40 points at 3,523.

Appliance maker Moulinex was a feature after the company issued a profit warning, saying first-half sales were hit by the economic troubles in Russia and Asia.