Frankfurt Dax: 4108.40 (-88.13) A merger of two of Germany's largest regional commercial banks failed to keep the index from tumbling about 2 per cent in bourse trade yesterday as a long-awaited wave of profit-taking hit the market.

German banks Bayerische Vereinsbank AG and Bayerische

Hypotheken-und Wechselbank AG, said they would merge to create the second-largest bank in the country.

Paris CAC-40: 2874.12 (-2.57)

French stocks fell yesterday after the Socialist-led government tapped big business to make up the bulk of anticipated revenue shortfalls to allow France to qualify for European monetary union.

The stock market fell more than 1.5 per cent in early trading but steadied above its lows after brokers calculated that most of the impact of the tax increases was already priced into stocks.

Milan Mibtel: 14626 (+85)

Italian shares closed mostly higher yesterday as values swung back and forth after Wall Street's choppy start.