European shares ended a lacklustre summer session slightly higher yesterday, helped by a further cooling in oil prices and gains in heavyweight drug stocks like GlaxoSmithKline.

Mining stocks remained under pressure following a downgrade of the sector by analysts at Smith Barney, with Anglo-American leading the way lower as a strike by miners in Botswana intensified.

By 1533 GMT, the FTSE Eurotop 300 index of pan-European blue chips was unofficially closed 0.2 per cent firmer at 965.0 points on skimpy turnover of about €1.7 billion.

Summer holidays have drained volumes in recent sessions but investors also say there is little reason to dive into markets at present.

"We look at financial assets of all sorts around the world, whether bonds or equities, and we don't find much that looks compellingly attractive," said Simon Hallett, a fund manager at Barings Asset Management.

"I don't think (European shares) are stunningly cheap against a longer-term history. They're cheap against a near-term history but the market seems to be pricing in fairly decent earnings growth for this year and next, which may be a bit vulnerable on the downside."

The narrower DJ Euro Stoxx 50 index rose 0.2 per cent to 2,664.0 points, having bounced from 2004 lows last week.

Analysts said the rebound did not look particularly convincing.

"Markets have staged a strong recovery over the last few days, leaving investors to ask if the sharp correction that began in July will be short-lived," Credit Suisse First Boston strategist Bill McQuaker said.