Frankfurt Dax: 2427.07 (-6.84)

Caution was the watchword for German shares as the market took a mid-week break, dragged lower by weaker bunds and a flagging dollar. Myriad worries weighed on the market, notably the weak dollar, falling debt markets and uncertainty ahead of the expiry of options on the Dax and its constituents tomorrow. Another record close on Wall Street failed to boost sentiment.

Paris CAC-40: 1956.38 (-26.95)

French shares finished sharply lower, weighed down by lower bond prices, a drop in the value of the franc and early weakness on Wall Street. Corporate results showing sluggish economic activity and a report that Paribas would show a big loss for the year also hit prices.

Milan Mibtel: 9713 (-365)

The Milan market fell by almost 4 per cent on the latest political crisis, the worst one-day performance in 18 months. Dealers see little prospect of any serious improvement until the political vacuum is filled.