LONDON, July 26: European stock markets higher on Wednesday after Wall Street extended its rally overnight, but gains were limited in Paris after the share price of carmaker Peugeot plummeted.

London's FTSE 100 index of leading shares gained 0.38 per cent to 5,873.20 points, Frankfurt's DAX 30 index won 0.21 per cent to 5,577.26 points and the Paris CAC 40 advanced 0.18 per cent to 4,942.16.

The DJ Euro Stoxx 50 index of leading eurozone shares increased 0.24 per cent to 3,640.09 points.

Wall Street shares rebounded from a lackluster start and finished higher Tuesday, extending their rally amid a drop in oil prices and generally strong earnings reports, dealers said.

However Japanese share prices turned weaker Wednesday as caution ahead of a flood of domestic company results weighed against optimism over a stronger US market.

In London, Reuters jumped 2.58 per cent to 387.25 pence after the British news and financial information group raised its 2006 growth targets and hiked its dividend, dealers said.

TUI, the German shipping and tourism group, surged 4.09 per cent to 16.03 euros in Frankfurt on speculation it could face a takeover bid from Danish shipping and oil company A.P. Moeller-Maersk.

In New York on Tuesday, the Dow Jones Industrial Average climbed 0.48 per cent to close at 11,103.71 points and the tech-heavy Nasdaq added 0.58 per cent to 2,073.90.—AFP