Stronger S&P futures and a slightly firmer dollar boosted European markets early on, despite a flat Wall Street performance.

The new German government said it saw growth at a 2% rate in 1999, considerably slower than the 2.8% expected this year, according to a report in Wednesday's edition of German daily Handelsblatt.

Frankfurt

Shares were helped by modest dollar gains and stronger S&Ps in the wake of the Democrats strong showing in the US elections.

At 0907 GMT the Xetra Dax was 60.66 points higher at 4769.98.

The market was expected to focus on Siemens results as traders said the direction of the Xetra DAX may hang on how investors perceive the heavily-weighted blue chip.

Since Siemens announced a 10-point plan in July to accelerate its restructuring, the market has been braced for dramatic announcements regarding job cuts and strategic moves.

Paris

Shares opened higher with Tuesday's rate cuts in Sweden, Portugal and Spain giving the market a slight boost.

At 0907 GMT the Cac 40 was 35.86 points higher at 3619.50.

Traders said the effect of the interest rate cuts will be limited as few expect them to lead to similar cuts in Germany and France.

Traders said shares likely to generate buying activity include smaller stocks which have not yet rebounded after the onset of the Russian financial crisis.

France Telecom may continue to suffer from a profit warning issued by Deutsche Telecom.

Traders said nine-months sales figures released late Tuesday from Saint Gobain and Schneider came in largely in line with expectations but may cause investors to review their portfolio holdings.