German shares closed sharply lower as a weaker dollar impacted heavily on the market. The Bundesbank decision to leave its key interest rates unchanged was no surprise and had little impact on market activity although it is not a positive for the market.

Dealers do not expect any significant improvement today without a significant overnight improvement on Wall Street.

CAC-40 2108.44 (-8.66)

The French market ended weaker, coming under pressure from book squaring ahead of the expire of the May futures contract today and depressed by weaker bond prices and the fall in the dollar.

Some dealers expect further futures related volatility this morning before the expiry of the contract, but the market may improve once that volatility subsides.

Mibtel 10647 (-86)

Italian shares ended easier but off the session's lows, depressed by the fall in bond futures.