Around the World's Markets: FRANKFURT

THE DAX index set a second straight year high as heavyweight DaimlerChrysler extended a modest uptrend and traders said more rises by the overall market were likely. They said the market was cheered by a rosy report on the service economy on Monday, merger speculation after a French oil takeover bid and Wall Street's Friday rise to an all-time high.

The DAX ended up 106.57 points, or 1.93 per cent, at 5,625.62 points but trade was fairly light during Monday's holiday in the US.