DAX: 4335.74 (-70.35) The DAX index, Europe's forerunner in the race this week to all-time highs, ignored the Bundesbank's rate decision and held sharply lower levels as banking shares fell on corporate earnings.

Dealers said there was no fundamental reason for the volatility.

CAC-40: 2973.53 (-30) French stocks recovered early losses made when investors sold shares to lock in profits made in this week's jump to record highs.

Dealers said that so long as the dollar remained high against the franc, the share market fall would remain limited.

Mibtel: 15006 (-157)

Italian shares closed mostly lower yesterday as investors took profits after three days of sustained gains in which record highs have been successively breached. Milan also seized on Wall Street's easier trend to bring the market to an abrupt halt after three successive days of recordbreaking rises.