Frankfurt Dax: 5889.01 (+4.01)

In Frankfurt German shares surrendered early gains, despite rises in car shares and the DAX index of electronic trading ended around a quarter percent lower. Dresdner Bank AG closed down one mark after first half profit came in below forecasts but BMW shares rose more than three per cent after news it had won exclusive rights to the Rolls-Royce name, despite rival Volkswagen buying Rolls-Royce last month.

Paris CAC-40: 4122.35 (-17.18)

On the Paris bourse a morning rebound proved fragile and even the index heavyweight France Telecom, which had led the morning risers, slipped to close just over 2 per cent down.

Shares in the telecommunications and engineering group Alcatel also slid as the company reported a lower-than-expected rise in first-half sales.

Milan MIBTEL: 24869 (+9)

Italian shares erased most of the earlier gains by the close as the Dow eased, but just managed to end in positive territory after a session described by dealers as dull, technical and boring with thin volume.