Germany's blue-chip DAX index ended firmer as a stronger dollar helped the market shrug off the impact of a 5.1 per cent drop in Tokyo's Nikkei index. Dealers said the fallout from the collapse of Japan's Yamaichi Securities had already hit the German market on Monday and so the Nikkei's drop had only a limited effect.

Paris CAC-40: 2,786.26 (-16.22)

French shares ran out of steam to finish weaker despite a buzz in bank shares as the market fed on expectations that Paribas would announce a buyout of Cie Bancaire and Cetelem. The CAC40 index opened higher but traded in a narrow range and dipped back through the 28,000 points level.

Milan Mibtel: 15,146 (+73)

Italian shares were firmer but saw gains pared at the close following moves on Wall Street which saw an early rally peter out. Volume was thin and the promptness of Milan to follow New York lower reflected the lack of conviction in the market.