DAX: 5,432.03 (-41.69)

German shares re-couped their earlier losses after Russia effectively devalued the rouble and imposed a 90-day moratorium, badly rattling market sentiment. Dealers said that markets largely recovered in the afternoon.

Paris CAC-40: 3983 (-11.10)

Stocks partially recovered from an early slide yesterday to close down, but off their lows as Wall Street bounced back from worries over the lastest rouble crisis.

The index, already vulnerable after last week's worry over a potential devaluation in China, was also knocked back by the Nikkei's 2.18 slump. Paris trade was dominated by defensive buying.

Milan Mibtel: 23,655 (+171)

The bourse closed firmer in line with Wall Street after a volatile session in thin holiday trade. "We more than made up for this morning's fall on a wave of news from Japan and Russia," a dealer said.

Telecom Italia performed well, up 3.47 per cent, helped by foreign interest. Mediaset gained strongly towards the close, ending 4.1 per cent higher at 10,949.