Frankfurt DAX: 3959.33 (-112.46)

Germany's IBIS DAX index ended the day down 2 per cent well off earlier lows, with a softer dollar, weaker Bunds and insecurity about where Wall Street is going contributing to nervous sentiment.

The IBIS DAX index, which tracks electronic trade, ended down 2.04 per cent at 3993.70 points, rescued from a bigger correction by lower but stable early prices on Wall Street.

Paris CAC-40: 2869.26 (-29.31)

French shares closed sharply lower in the wake of a slide by the dollar below the 1.80 deutschmark level which triggered some sell-offs by US investment funds. A late attempt by the dollar to climb back above DM1.80 managed the market to recover from its earlier low.

Milan Mibtel: 14160 (-122)

Italian shares closed lower yesterday, unable to shake off concerns that the Bundesbank will increase short-term interest rates soon to cool down the quickening pace of inflation.