Frankfurt Dax: 3237.87 (+4.66)

The German market fell sharply by 30 points in the early after hours session after the Green span comments on stock markets but soon stabilised and the IBIS Dax, which reflects electronic after hours trading, closed on 3247.88. The recovery in the market was in line with the bond market which was firmer after an early fall.

Paris CAC-40: 2602.17 (-5.55)

French shares closed marginally lower after a day spent trading in a narrow range. The market was knocked sharply into negative territory after the Greenspan comments but soon recovered to show a modest fall on the day.

Milan MIBTEL: 12083 (-241)

Italian shares closed sharply lower and extended early losses. There was general selling across the board but dealers expressed the view that if the market falls further, there may be a sharp correction. Banks were under pressure with BCI down almost 5 per cent and Banco di Roma off 4 per cent. Telecoms also fared poorly, with Telecom Italia, STET and TIM all sharply lower.