Frankfurt DAX: 3741.48 (-23.63)

German shares ended bourse trade sharply lower amid what traders said was nervous market sentiment with no new data around to help lift spirits on the floor of the Frankfurt bourse.

The index later ended IBIS electronic trading at 3721.18 points, slipping with Wall Street.

In the share market yesterday, traders said that while there was a lot of movement going on, most of it was based on derivatives.

Paris CAC-40: 2762.60 (-33.27)

French stocks fell sharply on profit-taking fuelled by Wall Street's drop and caution ahead of the new Socialist-led government's keynote policy speech tomorrow.

Brokers said sentiment on the bourse was cooling after a Monday morning surge to all-time highs, and investors were feeling cautious ahead of prime minister Mr Lionel Jospin's policy speech. Milan Mibtel: 12717 (-37)

Italian shares closed mostly lower but above the day's lows following Wall Street's dive.