Frankfurt DAX: 3854.81 (-117.74)

German shares recovered slightly in after-hours dealing, after the heavy falls in normal floor trading. The main factors behind the weakness and the failure to recover after the positive US economic figures were a sharp fall by Deutsche Telekom and a negative reaction to rumours that the Bundesbank plans a rate rise after the G7 meeting.

Paris CAC-40: 2834.07 (-9.53)

French shares closed marginally lower after a volatile session which saw the index rise by as much as 2.5 per cent after the US retail sales figures before giving up all of those gains.

Milan Mibtel: 14375 (-21)

Shares closed mostly lower, with signs that investors were switching into bonds.