Frankfurt Dax: 3543.43 (-61.12)

The Frankfurt market suffered most among European markets from the speculation on a US rate rise, with floor trade ending down 1.7 per cent as the weaker dollar also hit exporting sectors. Many investors took up defensive positions before the FOMC.

Paris CAC-40: 2751.11 (-33.17)

Paris fared little better. The blue-chip CAC-40 index was down 1.6 per cent in early afternoon trade with the market divided over whether there would be no change or a quarter percentage point rise in US interest rates. "We're coming up to a couple of key events - the FOMC meeting, the French election - and the market is at record highs. It's normal to correct," one trader said. The CAC index rose 5.71 per cent last week.

Milan MIBTEL: 124345 (+8)

Italian shares closed steady ahead of the release of May inflation figures from five Italian cities; and as investors awaited the outcome of the Fed's meeting on interest rates. Fiat and ENI both lost ground on profit-taking.