Frankfurt Dax: 3279.90 (-60.13)

German shares took a sharp dive yesterday after Wall Street's tumble on Friday unnerved the market and reignited concerns on US inflation and the risk of higher US interest rates. But the market recovered in after hours trade and the IBIS DAX index, which tracks electronic trade, ended the day at 3297.52 points, just off a key technical support level at 3300.

Paris CAC-40: 2566.13 (-8.43)

In Paris, the CAC-40 index briefly narrowed its losses after tumbling more than 2 per cent at the start, but turned down once more with Wall Street. The blue chip index, which lost 1.28 per cent on Friday, was standing at 2566.13 points after bouncing off a low of 2528.30.

Milan MIBTEL: 12068 (-11)

Italian shares closed mixed with the market outperforming most other European stock markets and shrugging off Wall Street's slide last Friday. Olivetti, however, took a pounding and closed almost 6 per cent lower on investor clears that the company may be planning a capital restructuring after sustained heavy losses.