European equity markets are expected to mark time ahead of the New Year holiday and the introduction of the euro over the weekend.

Frankfurt

The Dax index opened with small losses before inching into positive territory again - up 12 points to 5,056.

"I expect we'll remain over the 5000 level and edge up a bit, but there could be fluctuations of 20 points either way," a trader at HypoVereinsbank said. "Trading will be very calm, since we don't expect the release of any corporate news," he added. Many investors are likely to be away on holiday as well, traders said.

Auto giant DaimlerChrysler was an early feature after ending 5.4% higher on Monday on the group's expectation of 1998 earnings to be "significantly higher" than pro-forma earnings.

Paris

French stocks opened flat, with many investors absent between Christmas and the New Year. The Cac 40 was up 6 points at 3,879.

"The market should pretty much be flat, as it was yesterday," a trader at Oddo brokerage house said. "I don't see things picking up until we are well into the new year."