German shares fell sharply in after-hours electronic trading, with the IBIS Dax closing on 3328.41 from an official closing level of 3347.58. The weaker dollar was the main factor weighing on the market. Uncertainty about the direction of the dollar and also of US interest rates is likely to exert mild pressure on the German market in the days ahead, dealers said.

Paris CAC-40: 2522.67 (-24.09)

French shares fell by almost 1 per cent as political risk stalked the markets. Traders said that the market was waiting for confirmation that President Chirac would dissolve parliament and set an election date for late May or early June.

Milan MIBTEL: 12299 (+51)

The Italian market closed firmer, supported by a flurry of short-covering ahead of the release of preliminary April inflation figures which investors hope could trigger an early cut in interest rates.