It was expected to be a thin day for trading as many European markets wind down ahead of the Christmas holiday break.

Frankfurt

German share prices edged higher on the last day of trading before the Christmas holidays.

At 0911 the Xetra Dax index of shares was up 35.86 points at 4915.33.

"With those volumes, anything is possible," said Gerald Kany who is with customer trading at Dresdner Bank in Frankfurt.

"As soon as there is some volume, the Xetra Dax can move 100 points in either direction," he added.

However, he expects that the positive sentiment will prevail in the market.

He projects a year-end rally will set in on the stock market after the Christmas holidays.

Paris

French shares opened slightly down on the Paris market's last trading day before Christmas.

At 0910 the Cac 40 index was down 11.19 points at 3809.28.

A largely steady dollar overnight against European currencies and a good opening on the Frankfurt stock market helped bolster early trading.

Traders said investors' reluctance to commit themselves to the market continues ahead of the start of euro in the New Year.

"Players are just a bit nervous about buying in French francs and settling in euro - there is still a small risk out there," said Richard Morisseau, a trader at broking house Meeschaert-Roussell.

"I don't see the Cac 40 moving far from current levels before the end of the year." he added.