PARIS, Aug 27: European markets were broadly higher on Monday, but trading was subdued with the London stock exchange closed for a public holiday in Britain. In Paris, the CAC 40 index of leading shares gained 0.67 per cent to 5,606.87 points, continuing gains which saw the French market rise 3.84 per cent last week.

In Frankfurt the Dax added 0.23 per cent while the Euro stocks 50 index of leading pan-European shares climbed 0.37 per cent.

On Friday in New York, the Dow Jones rose 1.08 per cent and the Nasdaq added 1.38 per cent as global stock markets found their feet again after several weeks of turmoil sparked by problems in the US housing market.

In Asia on Monday, markets were broadly higher, with the Shangahi and Hong Kong markets closing at new records highs, while Tokyo also closed stronger.

Investors in Europe and Asia were waiting for the release of US existing home sales data for July later on Monday with many anxious to see how the existing market performed against the backdrop of the subprime loans crisis.

Investors in Europe were also waiting for a speech later Monday by the head of the European Central Bank Jean-Claude Trichet, who is making an address in the Hungarian capital Budapest.

Traders are especially concerned about the future movement of interest rates given fears this month about a credit crunch caused by losses by banks who are exposed to the US subprime home loan sector.

The European Central Bank has signalled however that it intends to go ahead with a planned increase in eurozone interest rates at its next meeting in September.

Global markets have been hit by losses in the high-risk subprime home loans market in the US where many borrowers have defaulted, putting pressure on mortgage brokers and banks.—AFP