Frankfurt

German share prices were higher in early trade on continued positive sentiment.

At 1006 GMT the Dax index was 63.04 point shigher at 5007.41.

"If we can stay above 5000 for the next two days, that will be a good sign for (more upward momentum) next week," said Markus Mages, institutional salesman at HypoVereinsbank.

But with US markets closed because of a public holiday and quiet trading expected there tomorrow, dealers were unsure about whether the German market would have enough stimuli to make influential gains.

Meanwhile, insurer Allianz was expected to release good nine-month premium income figures which could boost its shares and the market as well.

Paris

Shares continued their recent advance, with further gains at the start of trade amid sudden interest in oil shares on a report that US sector giants Exxon and Mobil are in merger talks.

At 0927 GMT the Cac 40 was 28.8 points higher at 3875.87.

"The market is going to be pulled by oil shares," said Jean-Francois Valles, a trader with the French brokerage house Meeschaert-Rousselle.

"This reported merger is going to trigger speculation of more deals. French shares should be particularly in favour as they're resisting the slump in oil prices much better than their competitors."