Frankfurt Dax: 4278.48 (-84.61)German shares continued to plummet in electronic after-hours trading on the back of the weaker opening session in New York and the strong statement by the Bundesbank that it will not hesitate to raise interest rates to choke off inflation. The IBIS Dax fell to 4212.23 after floor trading had left the index down over 84 points on 4278.61.

Paris CAC-40: 2924.04 (-74.53)

French shares also fell sharply with investors concerned at the second consecutive day of heavy selling on Wall Street and a flurry of mixed economic signals. French bonds fell on the back of the weaker dollar and an early inflation warning from the Bundesbank

Milan MIBTEL: 14398 (-202)

Italian shares closed lower after a short-lived rally on the back of better-than-expected US economic figures faltered and Wall Street continued its slide. Trading volumes were thin with the options expiry today and the closure of the market tomorrow for the Assumption Day holiday.