Paris apart, leading bourses tracked the weak trend on Wall Street.

The FTSE Eurobloc 100 index shed 0.4 per cent at 1,059.79 and the FTSE Eurotop 100 index 0.7 per cent at 2,904.34. The FTSE Eurotop 300 index ended 0.6 per cent lower at 1,267.48.

Frankfurt pared early afternoon losses to close with the Xetra-Dax index off 44.74 at 5,246.49.

Mannesmann remained an active feature, tumbling 8.2 per cent on the news that it is putting up much more than expected in its takeover bid for Orange, the British mobile phone operator.

The bid is also heavily structured towards new equity and as a result Mannesmann shares fell €13.00 to €144.80, brushing aside persistent rumours of a high powered takeover offer for Mannesmann itself.

Paris managed to stand out against the broad European downturn, adding 24.56 at 4,602.39 on the CAC 40 index.

Danaone met with buying after the foods group turned in strong third quarter results. Brokers instantly turned positive on the stock. Dresdner Bank lifted earnings estimates for this year and next and Goldman Sachs set a target price of €333. The shares rose €7.90 to €236.

Amsterdam fell 6.62 on the AEX index to end just shy of the low for the session at 537.59.

Philips, underpinned by upbeat third quarter trading, stood out like a beacon, advancing €2.15 to €89.95 in the face of heavy selling across the market in general.

Milan extended its afternoon losses as Wall Street opened lower and the insurance sector reversed early gains. The Mibtel index closed 53 lower at 22,670.

Ina gave up 1.3 per cent to €2.69, off a high of €2.81, after a Rome court upheld the insurer's appeal against takeover rules that restricted its ability to ward off the takeover bid from Generali. However, dealers said that in spite of the apparent reprieve for Ina, only a white knight could now save the insurer, given Generali's agreement with Sanpaulo-IMI to carve up Ina's assets.