Dax: 2848.77 (-39.92)

In Germany, equities ended the first day's trade of the new year well down in the wake of a slide on the Dow Jones Industrial index after stronger-than- expected US manufacturing data.

The DAX index of floor trade ended down 1.38 per cent while futures traded 69 points down at 2,835.5 points as German debt futures were taken lower by a fall in US Treasuries.

Hoechst AG finished down 2.43 marks at 69.72 marks and Bayer AG ended down 1.85 marks at 61.15 marks.

CAC-40: 2256.97 (-58.76)

In France, the equity market started the new trading off with a nosedive. The CAC-40 index finished the day at 2,256.97 points, down a hefty 2.54 per cent by comparison with the Tuesday close. Wednesday was a holiday.

Mibtel 10,488 (-83)

Italy was no exception to the general slide on European markets. The value of the index was down 0.79 per cent at the close of trading. Dealers attributed the fall to the stronger than expected US figures.