Dax: 2508.44 (-16.98)

Markets discounted and then shrugged off the Bundesbank policy council's decision not to alter German interest rates.

After falling in pre-market computerised trading, Frankfurt's Dax index opened down 10.40 points at 2515.02.

The index fell further in afternoon trading, testing the downside at 2500, before recovering.

CAC-40: 2019.97 (-10.54)

French shares fell through the day after the Bundesbank and the Bank of France decided not to cut interest rates.

The CAC-40 index was down over 20 points, more than 1 per cent, at 2010.16 in afternoon trading, before recovering. Alcatel was up 11.4 francs at Ffr446 after reporting a Ffr25.6 billion loss for 1995.

Mibtel: 9213 (+8)

Italian shares recovered from earlier weakness and closed marginally ahead on the day. Dealers said, however, that trading was very selective and the underlying tone of the market remained weak.