LONDON - Britain's top share index closed flat, under-performing other European markets, as interest-rate worries dampened sentiment and retailers including Morrison and Tesco fell.

The FTSE 100 index closed down 0.9 points at 6,649.3, with bid speculation in banks offset by the drop in retailers.ROUNDUP:EUROFIRSTEUROPE - European shares closed higher as merger and acquisition talk surrounding insurers and banks helped markets pare losses struck in the past two sessions, while Germany's key DAX index hit a record close.

Allianz rose for the fifth day in a row, with the day's two percent gains stoked by a report in a German stock market newsletter that Deutsche Bank was in talks to buy the retail operations of the insurer's Dresdner Bank unit.

The pan-European FTSEurofirst 300 index closed 0.4 percent stronger at 1,620.2, paring a 0.7 percent fall seen in the past two days.ROUNDUP:EUROmarketsFRANKFURT - The DAX index ended at 8,090.49 points, up 56.97 or 0.71 percent.

PARIS - The CAC-40 index closed at 6,093.29 points, up 21.62 or 0.36 percent.

ZURICH - The Swiss market index closed at 9,347.28 points, up 13.88 or 0.15 percent.

MILAN - The All Share Mibtel index closed at 33,419 points, down 42 or 0.13 percent.ROUNDUP:nikkeiTOKYO - The Nikkei climbed 0.26 percent to end at its highest close since February as Yokogawa Electric jumped on a report it had won a big order while Olympus and others with exposure to European markets rose with the yen near an all-time low against the euro.

The Nikkei share average added 48.07 points to 18,211.68, just short of this year's closing high of 18,215.35 marked on February 26.ROUNDUP:hang sengHONG KONG - Blue chips rose 0.47 percent to their third consecutive all-time closing high, with mainland financial plays gaining further ground after a lacklustre performance in the past few months.

Hong Kong-listed China plays ended at their fourth straight record close, helped by PetroChina Co. Ltd., which said it was seeking a Shanghai listing. The benchmark Hang Seng Index ended up up 101.78 points at 21,684.67.ROUNDUP:asxSYDNEY - Shares rose 0.39 percent to set their 33rd record closing high this year, led by gains in property firms as worries of higher global interest rates faded following a fall in U.S. bond yields.

The benchmark S&P/ASX 200 index rose 24.9 points to 6,396.9, surpassing its previous all-time closing high of 6,392.9 set on June 4.ROUNDUP:south africaJOHANNESBURG - Diversified mining groups Anglo American and BHP Billiton lifted South Africa's bourse on stronger commodity prices, while Impala Platinum rose after increasing its capital expenditure. The All-share index closed at 29,510.35 points, up 267.16 or 0.91 percent. The All Gold index closed at 2,622.14 points, up 40.27 or 1.56 percent, while the Industrial index closed at 19,980.07 points, up 173.35 or 0.88 percent.