German shares started the week on a faltering note as uncertainty about the dollar sent the blue-chip DAX index down to its lowest close in nearly three weeks. The close was the lowest since April 9th, but low turnover ahead of this week's May Day holiday meant the drop was not viewed as dramatic. Some dealers said this may not be the market correction many had been waiting for all last week.

Paris CAC-40 2130.78 (-7.58)

French shares closed down more a third of a per cent on profit taking after the bourse's recent gains to year highs. The Paris bourse, which had risen seven per cent during April, was also pressurised by weaker bond prices.

Milan MIBTEL 1428 (-142)

Italian shares closed lower, with telecoms stocks taking the brunt of a wave of corrective profit taking after last week's across the board post election highs, traders said.