The Dow Jones index, key barometer of the New York Stock Exchange, gained 56 points and managed to climb once again above the 9,000 points level to close at just below 9,045.

High technology shares, could not hold Monday's gains. The Nasdaq index, where many high technology shares are listed, closed down 17 at 2,120 points.

London the loser

London shares, however, had a bad day. The FTSE 100 index closed down 33 points at 5,843 as the traditional pre-Christmas share rally dried up. Brokers said that investors had taken some profits and locked in recent gains.

Europe rally continues

On the continent, though, shares prices were holding up and Frankfurt's Dax index could hold on to a 44 point gain, ending the day at 4,825. The Bourse de Paris was up 17 with the Cac 40 closing at 3,820.

The odd one out was Zurich, were the SMI lost 79 points dropping to 7,091.

Gloomy Tokyo

Neither New York nor Europe's markets were prepared to follow Tokyo's example, where share prices received a drubbing. Analysts blamed the problems there on "local factors", mainly mounting concerns over the future of banking stocks, still mired in bad debts, and the stranglehold of economic recession.

The leading Nikkei index slumped 3%, or 382 points, overnight, below the 14,000 level for the first time in some months.

Distorted picture

The market's volatility and the overall picture of a rally on some of the world's share markets is distorted by the low turnover. When trading volume is low, relatively small orders can create the false impression of big demand for shares, resulting in high prices.

At this time of the year, market activity is usually low as investors and brokers get ready for the Christmas holidays. In Europe, traders are also preoccupied with getting ready for the launch of Europe's new single currency on 1 January 1999.