German shares failed to set new records in either floor trade on the DAX or electronic IBIS trade as the dollar and German bonds eased and an opening rally on Wall Street made little impact on sentiment.

Dealers said volumes were not significant enough to lift the DAX beyond the previous record high, a move which would have given the German share market a valuable psychological boost.

Paris CAC-40 2120.59 (-16.32)

Share prices, which had risen on three consecutive days, fell by 0.76 per cent to 2120.59 points on the CAC 40 index because investors took profits.

One factor depressing prices was news that Iraq and the United Nations had reached a preliminary agreement which would allow Iraq to export some oil.

Milan MIBTEL 10698 (-12)

Italian stocks eased as profit takers moved in ahead of the release of May inflation figures for three Italian cities.